Thread regarding 2U Inc. layoffs

Boiler room in Mumbai

Offshore and underground.

I'd expect to see some of the labor head offshore as well.

Revenue is not value if ripping off consumers drives revenues. Sooner or later, they realize they bought an "Onega" watch.

There is value in the company. They're doing close to $1B in revenue and are generating Free Cash Flow. EdX has value - although not $800m or whatever they paid for it. The relationships with the Universities have value. Trilogy must have some value. They just have a lot of debt but if Paul can work with the creditors there is a future there.

I asked JK if there was any value left in 2U. He said maybe--in existing relationships with elite universities. Didn't make sense to me since it was like those schools being friends with a hosta***. Like Stockholm Syndrome? JK has been gone for so long, I wasn't sure what he meant.

There's way more labor cost that can potentially be cut. They can also scale back on the massive marketing budget. At this point the impact won't be substantial. All of the steps they're taking to mitigate the problems with the business should have been taken 18+ months ago.

Well they've already cut labor costs, and are in the process of trying to renegotiate their debt. How would it be that much different then what they've already done?

LBO would involve selling off parts of the company for cash to payoff existing debt, renegotiating existing debt, cutting labor costs, and maybe leveraging up the existing profitable parts of the business to flip in the near future.

In a LBO would the company still operate somewhat as is?

@SVP - what kind of entity would be looking to acquire?

The for sales sign is up for a LBO. VCs won’t touch us.

Delisting isnt that big a concern - they can just do a reverse stock split, but even that would probably be unlikely since they have 6 months to get the stock back over $1.

Paul is going to be able to refinance the debt before it comes due - most likely in the second quarter or early third quarter. He's cut nearly $100M in expenses and will continue to do so and the company is cash flow positive. Chip wasted a lot of money and those days are over. Most of the losses are accounting related like goodwill impairment. If they could find a buyer for one of segments of the business like Trilogy it would probably be huge as it could be used to pay down other debt.

I've long thought 2 was likely and have wondered why it didn't happen a year ago.

As for Byju's, I have a feeling they were ready to buy but freaked out at something, probably the finances.

How about Donald Trump as an angel investor?

(5) Take copious notes and pitch a story to Netflix called F-U. If that doesn't work, go with #4. And pray.

#1 and #4 are not mutually exclusive.