The Washington Post Co. announced Wednesday that it’s putting Newsweek up for sale. The magazine is losing money, and its paid weekly subscriptions have dropped below 2 million.
But although the Washington Post Co.’s flagship newspaper is also losing money, the company is surprisingly profitable because of a shrewd acquisition it made more than 20 years ago in a growing sector of the economy: for-profit higher education.
What Is Kaplan University?
In 1984, Stanley Kaplan – who pioneered standardized test prep courses — sold his business to The Washington Post Co. In 2000, Kaplan Higher Education bought a company called Quest. One of Quest’s properties was Hagerstown Business College in Hagerstown, Md., which then became Kaplan College and later part of Kaplan University.