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News Corp.’s $1 Billion Plan to Overhaul Education Is Riddled With Failures

By the end of June, News Corp. will have invested more than $1 billion in Amplify, its division that makes the tablets, sells an online curriculum and offers testing services. Amplify, which never set a timetable for turning a profit, has yet to do so. It reported a $193 million loss last year, and its annual revenue represented only about 1 percent of News Corp.’s sales of $8.6 billion.

The education effort has been riddled with technology failures, fragile equipment, a disconnect between tablet marketers and content developers, and an underestimation of how difficult it would be to win market share from entrenched rivals such as Houghton Mifflin Harcourt Co. in the kindergarten to high school education market.