When Khan Academy was on the verge of bankruptcy, it was worth the risk
The Khan Academy organization was at the brink of bankruptcy when it was purchased by Disney in 2018.
The company was in a tough spot when it purchased the property that has been home to Khan Academy for the past 14 years.
After the acquisition, the property was sold to Disney, which in turn acquired the remaining assets, including the brand, for $1.5 billion.
In the end, the deal created a new entity that included Khan Academy’s parent company, the Khan Academy Academy Education Foundation.
The company had hoped to get into the education business in the US and expand overseas.
But Khan Academy struggled to find a foothold there due to the cost of operating and the lack of foreign funding.
The business is still operating on a limited basis in India, but is struggling to meet demand for its courses in other countries.
A report by IDC noted that Khan Academy will have to raise money to continue operating in India and that its foreign revenues will be minimal.
The acquisition of Khan Academy also created a void for other educational ventures like the Khan Foundation and the Khan Scholarship Fund, which were struggling to find funding.