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Apollo Group
Apollo Group
Apollo Group Inc.
Type Founded Headquarters Key people Industry Revenue Employees Website
Public (NASDAQ: APOL) 1973 Phoenix, Arizona, USA John Sperling, Founder For-Profit Education $2.723 billion(2007) 14,500+[1] www.apollogrp.edu
Axia College (of University of Phoenix), the College for Financial Planning, the Institute for Professional Development, Insight Schools (Online Public High Schools for Washington, Wisconsin, and other locations), and Olympus High School. As of November 2005, the combined enrollment of the four U.S. domestic universities (UOPX, WIU, Axia, CFP) was approximately 315,350 students. Of these, nearly 90% attend the University of Phoenix, which Apollo describes as "the nation’s largest regionally accredited private university" [8]. As of September 2008 the company also owns and operates Meritus University (Meritus) in Canada. [2]
Apollo Group, Inc. (NASDAQ: APOL) is an S&P 500 corporation based in the South Phoenix area of Phoenix, Arizona. Apollo Group, Inc., through its subsidiaries, provides higher education to working adults. The company offers: • associate, bachelor, master, and doctoral degrees in business, criminal justice, general studies, health administration, and information technology. • program development services, which include degree program design, curriculum development, market research, student recruitment, accounting, and administrative services to regionally accredited private colleges and universities. • educational programs worldwide through its computerized educational delivery system. • other services including recruiting and training faculty, monitoring academic quality, and providing support services. • professional education programs, such as continuing education for teachers; custom training; environmental training; and other programs leading to certification in the areas of business, technology, and nursing. The company owns and operates four higherlearning institutions: the University of Phoenix, Western International University,
History
Apollo Group, Inc. was founded in 1973 in response to a gradual shift in higher education demographics from a student population dominated by youth to one in which approximately half the students are adults and over 80 percent of whom work full-time. Apollo’s founder, John Sperling, believed that employment with a single employer would be replaced by lifelong learning and employment with a variety of employers. Corporate revenues for the year ending August 31, 2005 were $2.251 billion[3]. As of August 31, 2005, Apollo Group offers its programs and services at 90 campuses in 39 states, Puerto Rico, Alberta, and British Columbia, as well as the Netherlands. Recently, Charles "Chas" Edelstein became the Chief Executive Officer of Apollo Group, a position that remained vacant for many years. Chas joins Joe D’Amico, the Chief Financial Officer, President, and Treasurer as the two key executive officers. Chas joined Apollo Group in late 2008 from Credit Suisse.[4]
Joint venture with Carlyle Group
According to a news release October 22, 2007, Apollo Group and the Carlyle Group
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will form a $1 billion joint venture to invest in international education services which will be named Apollo Global. Apollo Group has committed approximately $801 million and will own 80.1% of the new company and Carlyle has committed approximately $199 million and will own 19.9%. Apollo Global will replace the existing Apollo International, a separate company in which Apollo had invested.[5][6]
Apollo Group
probe, Apollo CFO Kenda Gonzalez and Controller Daniel E. Bachus resigned.[16] Judge Overturns $280-Million Verdict Against the Apollo Group A federal judge on August 5 2008 overturned a $280-million jury verdict against the Apollo Group in a shareholder lawsuit. The jury decided in January that the company had misled investors. In an order issued this week, however, Judge James A. Teilborg of the U.S. District Court for Arizona ruled that as a matter of law, the company was not responsible for their stock losses. The case stems from the 2004 release of a U.S. Department of Education report and subsequent publicity about aggressive recruiting tactics undertaken by the University of Phoenix, a subsidiary of the Apollo Group. Five days after the department’s findings became public, a Wall Street stock analyst, Kelly Flynn, published her own reports assessing the case, sending the stock price down. Investors who had held the company’s stock sued the Apollo Group, alleging that it had misled them by not disclosing information about the department’s review in a timely way. The company had maintained that the department’s report was inaccurate. In his ruling, Judge Teilborg states that the Apollo Group “misled the market in various ways” concerning the report, but adds that the investors failed to prove under the law that the company’s actions caused them harm. He agreed with Apollo’s argument that Ms. Flynn’s reports did not include information that was not already public. The investors have said they plan to appeal. http://chronicle.com/news/article/4938/ judge-overturns-280-million-verdict-againstthe-apollo-group
Apollo Global
Apollo Group has formed Apollo Global to manage and form subsidiaries, assets, and holdings overseas. As part of their first acquisitions, Apollo Global acquired Universidad de Artes, Ciencias y Comunicacion ’UNIACC’ in Chile as well as Meritus University in Canada.[7][8]
List of subsidiaries
• • • • • • • • • University of Phoenix / Axia College Western International University College for Financial Planning Institute for Professional Development Insight Schools [9] Olympus High School Orange Lutheran Online Meritus University, Canada [10] Universidad de Artes, Ciencias y Communicacion (UNIACC), Chile [11] • Universidad Latinoamericana S.C. (ULA), Mexico [12] • Aptimus Marketing [13]
Controversy
The Apollo Group is the target of a securitiesrelated lawsuit [14] alleging that the group disseminated false financial statements to stock purchasers. In January 2008, Apollo was found guilty of fraud for misleading investors by not disclosing a Department of Education report harshly critical of University of Phoenix’s recruitment practices. The jury awarded the plaintiffs $280 million.[15] The Nasdaq Listing and Hearings Review Council notified Apollo Group of possible delisting of its shares, and a New York law firm filed a class action lawsuit alleging that Apollo made false and misleading statements and omitted material information concerning the backdating of options granted by the company.[16] In the midst of the Nasdaq
External links
• Yahoo! Finance profile of Apollo Group • Universidad Latinoamericana, S.C. México
News articles
• University of Phoenix fined record $9.8 million article on the Arizona Daily Star (of Pulitzer, Inc.) • Trouble Grows for University Built on Profits, NY Times, February 11, 2007 by Sam Dillon
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Apollo Group
References
[1]
[2] [3] [4] [5]
[6]
[7] [8]
[9] Apollo Group, Inc. Announces Acquisition of Insight Schools [3] "Company Profile for Apollo Group Inc [10] Apollo Group, Inc. Launches New (APOL)". http://www.zenobank.com/ University [4] index.php?symbol=APOL&page=quotesearch. Apollo Global Completes Acquisition of [11] Retrieved on 2008-10-21. Universidad de Artes, Ciencias y Apollo Group News - The New York Comunicacion ’UNIACC’ [5] Times [1] [12] Apollo Group Enters Mexican Education Apollo Group 2005 annual report Market [6] Apollo Group Management [2] [13] Apollo Group Completes Acquisition of Apollo Group and the Carlyle Group Aptimus [7] Form $1 Billion Joint Venture to Make [14] Judge Upholds Securities Suit Against Investments in the International Apollo Group, The Business Journal of Education Services Sector, Apollo Phoenix, October 20, 2005, website, October 27, 2007 [15] Jury Finds U of Phoenix Parent Company Apollo Goes Global, Inside Higher Liable for $280 Million Chronicle of Education, October 22, 2007, Doug Higher Education January 16, 2008 Lederman [16] ^ Apollo controller resigns on heels of Apollo Group, Inc. Launches New CFO departure, The Business Journal of University, May 13, 2008 Phoenix, by Angela Gonzales, November Apollo Global Completes Acquisition of 9, 2006 Universidad de Artes, Ciencias y Comunicacion ’UNIACC’, April 1, 2008
Retrieved from "http://en.wikipedia.org/wiki/Apollo_Group" Categories: Companies listed on NASDAQ, Companies in the NASDAQ-100 Index, Companies established in 1973, Companies based in Phoenix, Arizona, Educational institutions established in 1973, For-profit universities and colleges This page was last modified on 14 May 2009, at 21:00 (UTC). All text is available under the terms of the GNU Free Documentation License. (See Copyrights for details.) Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a U.S. registered 501(c)(3) taxdeductible nonprofit charity. Privacy policy About Wikipedia Disclaimers
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