Blackboard Acquires Another Competitor

Will This Have an Impact on Distance Education?

Cindy Wolfe
Blackboard Inc. has acquired ANGEL Learning, Inc., for $95 million, creating a broader platform for distance learning technology. Blackboard (Nasdaq: BBBB) is a leading provider of web-based course-management software, is based in Washington, DC. ANGEL Learning, Inc., is a privately-held educational software company that sprang from research at Indiana-Purdue University begun in the late 1990s. Combined, the two companies serve approximately 5,800 schools, representing all grades, from kindergarten through graduate school.

Web-based distance learning requires the use of some type of course management software or OLS (online learning system). Both Blackboard and ANGEL systems include customizable features, the ability for students to manage assignment submissions, and protocol security.

Some educational institutions use course management software in traditional classes as a repository for assignments or grades. E-learning is enabled by adding online elements so that courses can be taught without face-to-face meetings.

Blackboard has a history of scooping up market share by acquiring competitors. In 2002, it purchased Prometheus from George Washington University. In 2005, Blackboard acquired WebCT, which happened to be its largest competitor for $180 million. The company was widely criticized for poor customer service and software performance after attempting to integrate WebCT and Blackboard into one company.

Blackboard's press release indicated that the acquisition will "accelerate the pace of innovation and interoperability in e-learning" by building on the strengths of both companies. Some fear this latest move by Blackboard will further reduce competition and choice in the marketplace. Others believe that combining forces creates a wider range of influence.

When the course management software market was young, innovation led to multiple options and software models. The market has become an oligopoly, dominated by only a few large and powerful players. As the need for distance learning software grows, fewer choices will be available as Blackboard continues to dominate by acquiring its competition.

Further reading:
Blackboard Plans to Buy Another Rival, Angel Learning
Blackboard Finalizes Purchase of Angel Learning
Blackboard Completes Acquisition of ANGEL Learning, Inc.

Published by Cindy Wolfe

Cindy Wolfe believes in personal fulfillment through education and training. Her experience as a manager, author, professor and student gives her a unique view about motivating others. She lends encouragemen...  View profile

To comment, please sign in to your Yahoo! account, or sign up for a new account.