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Byju's $1 billion deal to purchase US-based 2U

According to Bloomberg News, Byju's has made a bid of more than $1 billion to buy the American company 2U.

June 30, 2022 3:59 IST | India Infoline News Service
According to media reports, Byju's has made a bid of more than $1 billion to buy the American company 2U. The edtech giant made the board of 2U an offer last week that comes out to about $15 per share.

A deal might not be reached if 2U's board rejects the offer, according to the article, which also noted that the agreement is not final and that negotiations "might yet break apart." The market value of 2U is $717 million, while its total debt and other liabilities come to about $1 billion.

According to the article, Byju's has funding of more than $2.4 billion in place for whichever purchase it ultimately decides to pursue in an effort to quicken its growth and global expansion. Even though debt financing is more expensive than it was three months ago, the article noted that deals are still looking decent and that assets are less expensive. Since reaching a top of $55.55 in early 2021, shares of 2U have dropped by more than 80%.

Byju's, with a $22 billion valuation, is the most valuable startup in India.

According to the article, a deal might not be reached if 2U's board rejects the offer because it is not yet finalized and negotiations "might yet break apart."

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