Things don’t seem to work out for News Corp (NASDAQ:NWSA) in relation to its initiative to revamp education system of the country. As per the reports, News Corp decided to invest as much as $1 billion for this initiative, but continuous setbacks have hurt its plans.
Road So Far:
Kevin Warren, a seventh grade student tried many a times to log on to the new tablet that was made available in his school by News Corp after the previous gadget was replaced due to inefficient performance. Warren is not the only student who has found it difficult to work on the tablets installed by News Corp. in schools. Many of his classmates as well as students from other schools think the same.
Rupert Murdoch, Executive Chairman, News Corp (NASDAQ:NWSA)., stated in 2010 that country’s education system was desperately waiting to be transformed. According to him, someone would have to take the initiative and come ahead to revamp the education system.
The tablets offered by News Corp were supposed to bring a revolution in the schools and transform the entire system, but things didn’t go as per plans. As per the reports, the company has backed its initiative to such extent that if it fails, then News Corp will have to suffer huge financial loss. Amplify, the division of News Corp that looks after the production of tablets, sales of online curriculum and testing services has gathered unnecessary attention from people around the world. By the end of June, News Corp will have invested more than $1 billion in Amplify.
Since the inception, Amplify has never been able to produce a profit figure for the company. Last year it reported a loss figure of $193 million, and things aren’t looking good this time also. The management of the company has refused to comment on this issue.