Edison buyout draws Ire in Florida.
This past fall, Florida teachers found themselves in a strange alliance. Sunshine State teachers, via their state pension plan, became the new owners of Edison Schools Edison Schools Inc. is a for-profit company that manages public schools in the United States and the United Kingdom. It was founded in 1992. History
Edison Schools was widely hailed at the beginning of the 21st century as the leader in what "school reformers" saw as the . The Florida Retirement System purchased the Edison business, which includes school management, charter schools, summer and after-school programs and achievement management solutions has 20 states, for $180 million in November 2003. The buyout does not give teachers any direct involvement in the Edison business nor does it affect the company's 130 full-year schools and 200 summer schools nationwide. The sole purpose of the deal is to add to the retirement system's coffers.
Edison Schools and Liberty Partners, the investment firm that manages FRS FRS
Fellow of the Royal Society
n “flexed rotated side-bent,” an osteopathic abbreviation used to describe vertebral position in cases of spinal dysfunction. , cooked up the buyout without consulting Florida teachers. Mark Pudlow, spokesman for the Florida Education Association The Florida Education Association (FEA) is a statewide federation of teacher and educational workers' labor unions in the state of Florida in the United States. Its 122,000 members make it one of the largest unions in the state. , questions the wisdom of spending $180 million on a company with "a terrible track record." Edison did not turn a profit until June 2003, when it reported a $10 million quarterly profit.
The flip side Flip side
In the context of general equities, opposite side to a proposition or position (buy, if sell is the proposition and vice versa). is that the outlook for school privatization privatization: see nationalization.
Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned is excellent, and the purchase of the company will make money for the pension fund. FRS administrators plan to sell the company for a profit in the future. The time for re-selling Edison depends on profitability and the market for education management solutions. The plan could succeed. When Edison was on the market, more than 10 buyers wanted to purchase the company. Adam Tucker, spokesperson for Edison Schools, points out, "It's in everybody's best interest for Edison to be successful."
If Edison succeeds, the biggest beneficiary may be company founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Christopher Whittle Christopher Whittle is the name of more than one potentially notable person:
Whether or not teachers make out financially on the deal, Pudlow says it sends a poor message to teachers. While Florida is cutting programs such as summer schools and teacher aides, the state is taking $180 million of the teachers' money to buy a company that peddles solutions that threaten public schools. "To spend $180 million on Edison Schools is a slap in the face," Pudlow says.
Edison's Christopher Whittle
Current position: CEO, Edison Schools
Former position: CEO, Channel One
Potential salary over next five years: $28.6M
Edison's 1999 IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. generated: $122.4M
No. of schools: 149
No. of students: 132,000
No. of states: 20