1 00:00:03,120 --> 00:00:10,160 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. American higher education is 2 00:00:10,200 --> 00:00:13,480 Speaker 1: facing a crisis, a few of them really. One of 3 00:00:13,520 --> 00:00:18,040 Speaker 1: them is economic. Increasingly many colleges and universities are struggling, 4 00:00:18,320 --> 00:00:21,200 Speaker 1: and some of them have had to shut down. What's 5 00:00:21,239 --> 00:00:23,799 Speaker 1: causing this, at least in part, is the number of 6 00:00:23,880 --> 00:00:26,960 Speaker 1: high school graduates in the United States is on the decline. 7 00:00:27,440 --> 00:00:29,960 Speaker 2: There's a demographic cliff, as they like to call it. 8 00:00:30,480 --> 00:00:33,360 Speaker 2: By twenty thirty seven, there will be a ten percent 9 00:00:33,400 --> 00:00:35,519 Speaker 2: decline in students that go to college. 10 00:00:35,760 --> 00:00:39,800 Speaker 1: Francesca Maglione covers personal finance and higher education for Bloomberg, 11 00:00:40,280 --> 00:00:42,320 Speaker 1: and she says that at the same time that the 12 00:00:42,320 --> 00:00:46,760 Speaker 1: pool of prospective students is shrinking, colleges are under pressure 13 00:00:46,840 --> 00:00:51,000 Speaker 1: to offer them more, more perks, more gyms, and other 14 00:00:51,040 --> 00:00:55,560 Speaker 1: new buildings dorm rooms that are more luxurious. But Francesca says, 15 00:00:55,680 --> 00:00:58,360 Speaker 1: there's a university that's trying something different. 16 00:00:58,680 --> 00:01:01,240 Speaker 2: So in Northeastern, for many decades was known as a 17 00:01:01,240 --> 00:01:04,559 Speaker 2: commuter school, kind of just filled with local students, really 18 00:01:04,560 --> 00:01:07,800 Speaker 2: trying to compete against all of the other colleges in Boston, 19 00:01:07,920 --> 00:01:10,840 Speaker 2: Boston College, bu Harvard. 20 00:01:10,880 --> 00:01:14,640 Speaker 1: Of course, in recent years, Northeastern has set its sites 21 00:01:14,680 --> 00:01:18,560 Speaker 1: beyond Boston, and its administrators have used a playbook that 22 00:01:18,720 --> 00:01:23,319 Speaker 1: Corporate America has developed and deployed. The new Northeastern is 23 00:01:23,400 --> 00:01:24,640 Speaker 1: barely recognizable. 24 00:01:25,000 --> 00:01:27,920 Speaker 2: It's really transformed over the years to kind of have 25 00:01:28,080 --> 00:01:32,160 Speaker 2: this big international recognition. They have a lot of international 26 00:01:32,160 --> 00:01:35,960 Speaker 2: students and they've also grown tremendously, so they really did 27 00:01:36,000 --> 00:01:38,800 Speaker 2: a complete flip up of what they were before. 28 00:01:39,440 --> 00:01:44,039 Speaker 1: As some of Northeastern's competitors struggle, it is growing a lot. 29 00:01:44,800 --> 00:01:48,000 Speaker 1: A decade ago, the school started buying up and merging 30 00:01:48,000 --> 00:01:49,920 Speaker 1: with colleges that were foundering. 31 00:01:50,400 --> 00:01:54,240 Speaker 2: They had their first campus outside of Boston in twenty eleven. 32 00:01:54,640 --> 00:01:59,400 Speaker 2: Now they have fourteen campuses and they have three abroad. 33 00:02:01,040 --> 00:02:04,080 Speaker 1: In some ways, it's been a success, and other schools 34 00:02:04,120 --> 00:02:08,600 Speaker 1: have taken note, but Northeastern's transformation has not been seamless. 35 00:02:09,160 --> 00:02:13,560 Speaker 1: There have been clashes over campus culture and curriculums and protests. 36 00:02:13,960 --> 00:02:21,839 Speaker 1: Samel's College Samals College shows it's the rare merger that's 37 00:02:21,880 --> 00:02:25,840 Speaker 1: harmonious when companies are involved, and it turns out the 38 00:02:25,880 --> 00:02:31,400 Speaker 1: same is true with colleges. I'm David Gerra, and this 39 00:02:31,480 --> 00:02:34,440 Speaker 1: is the big take from Bloomberg News on today's episode. 40 00:02:34,680 --> 00:02:39,239 Speaker 1: Using the private equity playbook in academia, what's worked for Northeastern, 41 00:02:39,400 --> 00:02:44,079 Speaker 1: what hasn't, and how that university's aspirations could reshape American 42 00:02:44,160 --> 00:02:53,000 Speaker 1: higher ed colleges and universities in the United States are 43 00:02:53,040 --> 00:02:57,280 Speaker 1: facing a financial reckoning, and according to Bloomberg's Francesca Magleone, 44 00:02:57,480 --> 00:02:58,640 Speaker 1: it's coming to a head. 45 00:02:59,000 --> 00:03:00,520 Speaker 2: A lot of people don't like to think of colleges 46 00:03:00,560 --> 00:03:04,080 Speaker 2: as businesses, but they are, and their main clients are students. 47 00:03:03,760 --> 00:03:07,480 Speaker 1: Of course, and Francesca says some of those prospective clients 48 00:03:07,720 --> 00:03:10,600 Speaker 1: are wondering if it's worth it to pay hundreds of 49 00:03:10,600 --> 00:03:15,120 Speaker 1: thousands of dollars to get an undergraduate education. That's one challenge, 50 00:03:15,240 --> 00:03:19,040 Speaker 1: but colleges and universities face others, especially smaller schools. 51 00:03:19,440 --> 00:03:24,360 Speaker 2: They're competing for students across the nation. Again, the number 52 00:03:24,360 --> 00:03:28,040 Speaker 2: of students is declining. COVID also was a big hard 53 00:03:28,080 --> 00:03:32,480 Speaker 2: hitter for colleges. They lost many students and costs went 54 00:03:32,600 --> 00:03:37,560 Speaker 2: exponentially up, something that for example, Harvard or Princeton doesn't struggle. 55 00:03:37,600 --> 00:03:39,520 Speaker 2: They have these massive endowments. 56 00:03:39,120 --> 00:03:40,000 Speaker 1: Billions of dollars. 57 00:03:40,320 --> 00:03:44,000 Speaker 2: Yeah, literally live for forever with these endowments, and that's 58 00:03:44,000 --> 00:03:46,440 Speaker 2: something that a small school doesn't have, and so a 59 00:03:46,600 --> 00:03:49,400 Speaker 2: dip and enrollment is a massive hit. 60 00:03:50,640 --> 00:03:54,040 Speaker 1: Administrators at Northeastern University, which has been in Boston for 61 00:03:54,080 --> 00:03:57,720 Speaker 1: more than one hundred years, noticed these trends, and Francesca 62 00:03:57,800 --> 00:03:59,920 Speaker 1: says they saw an opportunity. 63 00:04:00,400 --> 00:04:04,200 Speaker 2: Northeastern has been really strategic at a moment where a 64 00:04:04,360 --> 00:04:09,040 Speaker 2: higher education is going through tremendous windfalls. So something that 65 00:04:09,080 --> 00:04:12,640 Speaker 2: they've started to do around twenty nineteen is that they 66 00:04:12,680 --> 00:04:14,760 Speaker 2: took a look at the landscape and they saw that 67 00:04:14,800 --> 00:04:17,960 Speaker 2: all of these small private colleges were closing due to 68 00:04:18,160 --> 00:04:21,240 Speaker 2: dwindling enrollment. And so what they've done is that they 69 00:04:21,800 --> 00:04:25,600 Speaker 2: are in a very unique position to be acquiring these colleges. 70 00:04:25,520 --> 00:04:28,359 Speaker 1: Which is what they've been doing now. M and A 71 00:04:28,480 --> 00:04:30,320 Speaker 1: is not something that happens a lot in the world 72 00:04:30,320 --> 00:04:34,320 Speaker 1: of higher education, but Northeastern decided to go all in. 73 00:04:34,880 --> 00:04:37,760 Speaker 2: They've decided that at a time when colleges are competing 74 00:04:37,760 --> 00:04:39,680 Speaker 2: for students, they're just going to make it as easy 75 00:04:39,720 --> 00:04:42,599 Speaker 2: as possible for people to go to Northeastern no matter 76 00:04:42,680 --> 00:04:45,440 Speaker 2: where you are in the US and even abroad. So 77 00:04:45,520 --> 00:04:49,080 Speaker 2: they've bought three colleges so far. Their first acquisition was 78 00:04:49,080 --> 00:04:51,880 Speaker 2: in twenty nineteen it was a small college in London. 79 00:04:52,360 --> 00:04:56,360 Speaker 2: Then their second acquisition was in twenty twenty two, this 80 00:04:56,880 --> 00:05:01,039 Speaker 2: all women's college in Oakland, California called Mille College, and 81 00:05:01,080 --> 00:05:04,560 Speaker 2: then they've recently announced their third acquisition in New York. 82 00:05:04,760 --> 00:05:08,360 Speaker 2: It's like a theater arts school in the Upper east Side. 83 00:05:08,600 --> 00:05:11,839 Speaker 1: That would be Marymount Manhattan College. It has around fourteen 84 00:05:11,960 --> 00:05:15,040 Speaker 1: hundred full time students and it's known for its performing 85 00:05:15,160 --> 00:05:18,200 Speaker 1: arts program. Of course, there are hundreds of colleges that 86 00:05:18,240 --> 00:05:21,560 Speaker 1: fit this description across the country. I asked Francesca what 87 00:05:21,640 --> 00:05:24,680 Speaker 1: does Northeastern look for when it's thinking about an acquisition. 88 00:05:25,240 --> 00:05:27,320 Speaker 2: One of the first things would be real estate, Like 89 00:05:27,360 --> 00:05:30,000 Speaker 2: when you think about their latest merger in Marymount, they 90 00:05:30,040 --> 00:05:32,000 Speaker 2: just acquired a school in the Upper east Side with 91 00:05:32,040 --> 00:05:35,719 Speaker 2: three buildings in New York. That's a really hard market 92 00:05:35,760 --> 00:05:38,240 Speaker 2: to get into in higher education, and all they have 93 00:05:38,279 --> 00:05:40,880 Speaker 2: to do is kind of smaller liabilities and their assets, 94 00:05:40,960 --> 00:05:44,680 Speaker 2: and they're good to go with mills. For example, they 95 00:05:44,880 --> 00:05:49,400 Speaker 2: had seven hundred million dollars in assets. They had PubL Picassos, 96 00:05:49,520 --> 00:05:53,440 Speaker 2: they had Diego Riveras, they have an extensive portfolio that 97 00:05:53,480 --> 00:05:56,200 Speaker 2: they also acquired. So I think that's like a major 98 00:05:56,480 --> 00:06:00,920 Speaker 2: attraction for these mergers. These schools have these valuable assets 99 00:06:00,920 --> 00:06:03,360 Speaker 2: that they just can no longer continue to work with, 100 00:06:03,560 --> 00:06:07,320 Speaker 2: and by acquiring them, you kind of continue their life. 101 00:06:08,520 --> 00:06:11,480 Speaker 1: Could you contrast what Northeastern is doing with what I've 102 00:06:11,520 --> 00:06:13,400 Speaker 1: seen and YU doing, which is to sort of think 103 00:06:13,440 --> 00:06:16,200 Speaker 1: of itself as a global institution, open up these campuses 104 00:06:16,200 --> 00:06:19,600 Speaker 1: in Europe and Asia. Be you following a similar model? 105 00:06:20,160 --> 00:06:22,480 Speaker 1: How is this kind of unique what Northeastern is doing. 106 00:06:23,160 --> 00:06:26,960 Speaker 2: NYU hasn't really bought any colleges. Northeastern started buying colleges 107 00:06:27,440 --> 00:06:32,680 Speaker 2: in twenty nineteen. They're buying struggling businesses quote unquote, and 108 00:06:32,680 --> 00:06:35,160 Speaker 2: they're kind of flipping them around. And that's also how 109 00:06:35,160 --> 00:06:37,880 Speaker 2: they're different from what you would think of a traditional 110 00:06:37,920 --> 00:06:40,920 Speaker 2: college or the most the oldest colleges. It's more like, 111 00:06:41,320 --> 00:06:43,600 Speaker 2: the bigger we grow, the more students that we can 112 00:06:44,000 --> 00:06:47,240 Speaker 2: tailor to, the better we'll be off. How proactive have 113 00:06:47,279 --> 00:06:50,760 Speaker 2: they been They have a team dedicated to this. Leaving 114 00:06:50,760 --> 00:06:53,080 Speaker 2: their team is this woman called Mary Ludden. She used 115 00:06:53,080 --> 00:06:56,200 Speaker 2: to work in healthcare for twenty years. Even that's the 116 00:06:56,240 --> 00:06:58,680 Speaker 2: first indication that they're behaving like a business. They're hiring 117 00:06:58,720 --> 00:07:02,720 Speaker 2: people from outside of Higher Education. They have three teams 118 00:07:02,760 --> 00:07:06,599 Speaker 2: within this merger's desk. The first team is dedicated to 119 00:07:06,640 --> 00:07:10,520 Speaker 2: finding new colleges or finding new opportunities within the market. 120 00:07:10,560 --> 00:07:14,440 Speaker 2: The second team is dedicated to integrating the colleges once 121 00:07:14,440 --> 00:07:17,880 Speaker 2: they've been acquired, and the third team is responsible of 122 00:07:17,960 --> 00:07:20,720 Speaker 2: kind of making everything flow once the college is fully 123 00:07:20,800 --> 00:07:22,360 Speaker 2: acquired by Northeastern. 124 00:07:22,680 --> 00:07:25,880 Speaker 1: And this mergers and acquisition team has been pretty successful. 125 00:07:26,240 --> 00:07:29,680 Speaker 1: Francesca says that almost fifty schools have expressed interest in 126 00:07:29,760 --> 00:07:33,120 Speaker 1: working with them, and other colleges and universities are looking 127 00:07:33,160 --> 00:07:36,640 Speaker 1: at what Northeastern has done, what it's doing, wondering if 128 00:07:36,640 --> 00:07:38,160 Speaker 1: this model could work for them. 129 00:07:38,680 --> 00:07:41,760 Speaker 2: I guess Northeastern is unique because they're kind of taking 130 00:07:41,760 --> 00:07:44,280 Speaker 2: this private equity approach. I don't know if they'll love 131 00:07:44,320 --> 00:07:47,080 Speaker 2: the private equity analogy. I don't think they will, but 132 00:07:47,200 --> 00:07:50,160 Speaker 2: it is at the highest levels kind of what they're doing. 133 00:07:50,160 --> 00:07:53,960 Speaker 2: They're taking these struggling businesses and making them stay alive. 134 00:07:55,880 --> 00:07:59,040 Speaker 1: But none of this is happening without controversy. There have 135 00:07:59,120 --> 00:08:02,800 Speaker 1: been growing pain, especially for students. We'll get into that 136 00:08:03,240 --> 00:08:15,360 Speaker 1: after the break. There are advantages to what Northeastern University 137 00:08:15,400 --> 00:08:18,520 Speaker 1: has done. How fast it's expanded and how big it's grown. 138 00:08:19,080 --> 00:08:22,120 Speaker 1: But Bloomberg's Francesca Maglione says some of that has come 139 00:08:22,120 --> 00:08:25,360 Speaker 1: at a cost. Each college has its own culture, its 140 00:08:25,360 --> 00:08:28,320 Speaker 1: own way of doing things, and that changes when one 141 00:08:28,360 --> 00:08:31,520 Speaker 1: school merges with another, or when a college or university 142 00:08:31,720 --> 00:08:32,720 Speaker 1: buys another one. 143 00:08:33,000 --> 00:08:34,920 Speaker 2: This is one of the pain points for a Northeastern. 144 00:08:35,040 --> 00:08:37,960 Speaker 2: It's one of the growing pains when they had this 145 00:08:38,200 --> 00:08:40,800 Speaker 2: Mills merger in twenty twenty two. 146 00:08:41,200 --> 00:08:43,920 Speaker 1: Mills College, this was the school with the Picassos and 147 00:08:43,920 --> 00:08:47,520 Speaker 1: the riveras located in Oakland. It had been losing students 148 00:08:47,559 --> 00:08:52,120 Speaker 1: for years and finally Mills announced plans to close its doors. 149 00:08:52,160 --> 00:08:54,600 Speaker 2: And then Northeastern jumped in and said, wait, no, you 150 00:08:54,600 --> 00:08:58,400 Speaker 2: don't have to close. We'll save you. And then they 151 00:08:58,440 --> 00:09:02,320 Speaker 2: started sending students that had applied to Northeastern to attend 152 00:09:02,440 --> 00:09:05,880 Speaker 2: a semester at Mills. So this at the beginning the 153 00:09:05,880 --> 00:09:07,880 Speaker 2: transition is kind of rough because you have students that 154 00:09:08,000 --> 00:09:12,679 Speaker 2: chose to go to Mills before it turned into Northeastern, 155 00:09:12,760 --> 00:09:15,040 Speaker 2: and then students that chose to go to Northeastern, and 156 00:09:15,080 --> 00:09:17,400 Speaker 2: so there's a bit of a clash there. At the beginning, 157 00:09:17,800 --> 00:09:21,360 Speaker 2: there were protests apparently alumni and made these shirts that 158 00:09:21,400 --> 00:09:24,080 Speaker 2: said F you and you. I spoke to a student 159 00:09:24,120 --> 00:09:26,120 Speaker 2: that was one of the first students that came from 160 00:09:26,160 --> 00:09:29,000 Speaker 2: Northeastern to study at Mills, and she said that it 161 00:09:29,040 --> 00:09:32,480 Speaker 2: was really uncomfortable like that. She just felt like the 162 00:09:32,520 --> 00:09:35,360 Speaker 2: Mile students really did not want the Northeastern students to 163 00:09:35,480 --> 00:09:37,959 Speaker 2: go there. The Mill students are students that you wanted 164 00:09:38,000 --> 00:09:40,719 Speaker 2: to go to college to change the world. There was 165 00:09:40,760 --> 00:09:43,840 Speaker 2: a very social justice focused program, and then you have 166 00:09:43,920 --> 00:09:46,400 Speaker 2: these Northeastern students that are coming in with a completely 167 00:09:46,400 --> 00:09:47,400 Speaker 2: different perspective. 168 00:09:48,440 --> 00:09:52,000 Speaker 1: There were these cultural clashes, but there was also backlash 169 00:09:52,040 --> 00:09:54,719 Speaker 1: when Northeastern changed the college's curriculum. 170 00:09:55,200 --> 00:09:58,440 Speaker 2: Something that also a lot of students were guts bothered 171 00:09:58,480 --> 00:10:02,480 Speaker 2: about was that when merger completed, students that were still 172 00:10:02,480 --> 00:10:05,280 Speaker 2: there had to take additional prerecs or things like that 173 00:10:05,280 --> 00:10:09,679 Speaker 2: that were under Northeasterns requirements. And I think that all 174 00:10:09,760 --> 00:10:11,760 Speaker 2: of the class that they had taken at Mills were 175 00:10:11,760 --> 00:10:14,880 Speaker 2: then considered as like transfer credits to their new institution. 176 00:10:15,480 --> 00:10:20,080 Speaker 1: Meanwhile, as Northeastern's profile has grown, so has enrollment. It's 177 00:10:20,160 --> 00:10:24,320 Speaker 1: up fifteen percent since twenty nineteen, but a bigger student 178 00:10:24,400 --> 00:10:27,760 Speaker 1: body has also put pressure on Northeastern to expand to 179 00:10:27,880 --> 00:10:29,840 Speaker 1: accommodate all those new students. 180 00:10:30,400 --> 00:10:33,559 Speaker 2: I think that students feel the growth. Boston at the 181 00:10:33,640 --> 00:10:35,480 Speaker 2: end of the day is a city. They're limited by 182 00:10:35,520 --> 00:10:37,120 Speaker 2: the fact that they're in the city and not in 183 00:10:37,120 --> 00:10:39,240 Speaker 2: the middle of nowhere where they can continue to grow 184 00:10:39,360 --> 00:10:43,480 Speaker 2: of forever. And so students mention, you know, being shouldered 185 00:10:43,480 --> 00:10:47,840 Speaker 2: to shoulder walking through campus during rush hour, being three 186 00:10:47,840 --> 00:10:50,560 Speaker 2: people sleeping in a dorm. Students have even been put 187 00:10:50,600 --> 00:10:53,720 Speaker 2: in hotels at points, So I think students really feel 188 00:10:53,800 --> 00:10:57,120 Speaker 2: that strain. Like the library, there's never an open seat 189 00:10:57,120 --> 00:10:59,520 Speaker 2: at the library. I think that they feel this out 190 00:10:59,520 --> 00:11:00,920 Speaker 2: of much great ater scale. 191 00:11:01,360 --> 00:11:05,320 Speaker 1: According to Francesca, Northeastern says it's working hard to learn 192 00:11:05,320 --> 00:11:06,280 Speaker 1: from these missteps. 193 00:11:06,640 --> 00:11:08,880 Speaker 2: That's something that they're trying to do better with this 194 00:11:09,200 --> 00:11:12,480 Speaker 2: Marymount merger. For example, they announced this merger, they haven't 195 00:11:12,480 --> 00:11:14,960 Speaker 2: sensed students. They said that they're hoping to send students 196 00:11:14,960 --> 00:11:17,439 Speaker 2: in twenty twenty five, kind of in a way, giving 197 00:11:17,440 --> 00:11:20,319 Speaker 2: the school some time to get ready for their arrival. 198 00:11:20,800 --> 00:11:23,720 Speaker 1: As Northeastern grows, as it adds more real estate and 199 00:11:23,800 --> 00:11:26,960 Speaker 1: students and brings in more tuition dollars, as a result, 200 00:11:27,200 --> 00:11:30,199 Speaker 1: there's this question of whether other schools will follow in 201 00:11:30,240 --> 00:11:34,680 Speaker 1: the university's footsteps. What's your sense of how other schools 202 00:11:34,720 --> 00:11:36,960 Speaker 1: are looking what Northeastern is doing. Do they see this 203 00:11:36,960 --> 00:11:40,000 Speaker 1: as a model that they can replicate. Do they worry 204 00:11:40,000 --> 00:11:42,560 Speaker 1: that they've missed the curve that Northeastern is pioneered something 205 00:11:42,559 --> 00:11:44,320 Speaker 1: here that maybe they'd like to do, but now they 206 00:11:44,360 --> 00:11:45,360 Speaker 1: feel too far behind. 207 00:11:45,800 --> 00:11:47,679 Speaker 2: I think it depends on the school that you are. 208 00:11:47,960 --> 00:11:52,600 Speaker 2: We spoke to this private equity investor that has donated 209 00:11:52,640 --> 00:11:55,480 Speaker 2: to Northeastern and he said, you know, if Sam Walton 210 00:11:55,520 --> 00:11:57,599 Speaker 2: would have done just that one Walmart, it would have 211 00:11:57,600 --> 00:12:00,640 Speaker 2: probably been a great Walmart, but it wouldn't be Walmart. 212 00:12:01,160 --> 00:12:04,320 Speaker 1: My last question is, so where does this end. They 213 00:12:04,360 --> 00:12:08,600 Speaker 1: have entered into all these mergers, all these deals. What's 214 00:12:08,640 --> 00:12:10,959 Speaker 1: the goal for Northeastern long term? 215 00:12:11,280 --> 00:12:13,880 Speaker 2: They're interested in growing, you know, they want to continue growing. 216 00:12:13,920 --> 00:12:16,400 Speaker 1: They world domination, world domination. 217 00:12:16,559 --> 00:12:20,439 Speaker 2: They they have heard from almost fifty schools that are 218 00:12:20,480 --> 00:12:23,319 Speaker 2: interested in working with them. They right now I think, 219 00:12:23,320 --> 00:12:25,920 Speaker 2: are focused on, you know, implementing this latest campus that 220 00:12:25,920 --> 00:12:30,040 Speaker 2: they've acquired. But since twenty nineteen, they've acquired three schools. 221 00:12:30,559 --> 00:12:34,520 Speaker 2: That's a massive undertaking. Acquiring a school is really complicated, 222 00:12:34,880 --> 00:12:36,960 Speaker 2: So I think that they're really interested in continuing to 223 00:12:37,000 --> 00:12:40,000 Speaker 2: do this, and they will teut their application numbers, and 224 00:12:40,040 --> 00:12:42,360 Speaker 2: you know, there's demand for this kind of education and 225 00:12:42,520 --> 00:12:44,840 Speaker 2: they have that room to continue to grow. Are we 226 00:12:44,880 --> 00:12:47,160 Speaker 2: going to see this massive consolidation of all these smaller 227 00:12:47,200 --> 00:12:50,360 Speaker 2: schools kind of falling under these more known brands. I 228 00:12:50,360 --> 00:12:51,679 Speaker 2: don't know if that's going to be the case, but 229 00:12:51,720 --> 00:12:53,000 Speaker 2: I think that a lot of people that look at 230 00:12:53,000 --> 00:12:56,200 Speaker 2: this market and study this market think that's some sort 231 00:12:56,320 --> 00:12:58,800 Speaker 2: of model related to what Northeastern is doing is probably 232 00:12:58,840 --> 00:12:59,839 Speaker 2: going to be the way forward for. 233 00:13:03,120 --> 00:13:05,760 Speaker 1: This is the big take from Bloomberg News. I'm David Gora. 234 00:13:06,120 --> 00:13:09,319 Speaker 1: This episode was produced by Adriana Tapia. It was edited 235 00:13:09,320 --> 00:13:12,600 Speaker 1: by Stacy Vanick Smith, Craig Giamona, and Brian Chapatta. It 236 00:13:12,720 --> 00:13:15,360 Speaker 1: was fact checked by Jessica bec It was mixed by 237 00:13:15,360 --> 00:13:18,560 Speaker 1: Blake Maples. Our senior producer is Naomi Shaven, who helped 238 00:13:18,640 --> 00:13:21,960 Speaker 1: edit this episode. Our senior editor is Elizabeth Ponso. Our 239 00:13:22,040 --> 00:13:25,160 Speaker 1: executive producer is The Cold Beamster Boor. Sage Bauman is 240 00:13:25,200 --> 00:13:28,480 Speaker 1: Bloomberg's head of Podcasts. If you liked this episode, make 241 00:13:28,480 --> 00:13:30,800 Speaker 1: sure to subscribe and review The Big Take. Wherever you 242 00:13:30,840 --> 00:13:34,080 Speaker 1: listen to podcasts, it helps people find the show. Thanks 243 00:13:34,120 --> 00:13:35,920 Speaker 1: for listening. We'll be back tomorrow.