University of Idaho says University of Phoenix affiliation remains pending; sellers may seek alternatives

President C. Scott Green told the Joint Finance‑Appropriations Committee the University of Idaho’s agreement with the sellers of the University of Phoenix remains active but conditional.

Green said the sellers agreed to extend the deadline for concluding a definitive agreement to June 10 and that the contract permits the sellers to continue discussing other offers, including going to public markets. He said the University of Idaho received a $5 million payment when the agreement was signed and that the agreement includes a breakup fee that could amount to as much as $20 million to offset the university’s expenses if the transaction does not proceed.

“The agreement would say if they decide not to proceed with us, and decide to go with somebody else or enter the public markets, we do have a breakup fee of up to $20,000,000 to cover our expenses,” Green said. He added the university would use any proceeds first to offset expenses related to pursuit of the transaction and, if funds remained, to support priorities such as capacity in high‑demand programs.

Green said the sellers will determine whether, and when, to present legislation or proceed with a transaction and that the university must obtain legislative and State Board approval for any affiliation requiring statutory change.

Committee members asked about how any breakup fee or proceeds would be recorded; Green said the initial $5 million already received was used to offset transaction costs and that future receipts would reduce the fund balance where those monies are held.

No formal committee action occurred during the hearing; President Green and staff agreed to provide additional documentation to the committee if requested.