What Happens to Student Data Privacy When Chinese Firms Acquire U.S. Edtech Companies?
https://www.edsurge.com/news/2018-04-24-what-happens-to-student-data-privacy-when-chinese-firms-acquire-u-s-edtech-companies
Between the creation of a social rating system and street cameras with facial recognition capabilities, technology reports coming out of China have raised serious concerns for privacy advocates. These concerns are only heightened as Chinese investors turn their attention to the United States education technology space acquiring companies with millions of public school users.
A particularly notable deal this year centers on Edmodo, a cross between a social networking platform and a learning management system for schools that boasts having upwards of 90 million users. Net Dragon, a Chinese gaming company that is building a significant education division, bought Edmodo for a combination of cash and equity valued at $137.5 million earlier this month.
Edmodo began shifting to an advertising model last year, after years of struggling to generate revenue. This has left critics wondering why the Chinese firm chose to acquire Edmodo at such a price, some have gone as far as to call the move a data grab.
as data becomes a tool that governments such as Russia and China could use to influence voting systems or induce citizens into espionage, more legislators are turning their attention to the acquisitions of early-stage technology startups.
NetDragon officials, however, say they have no interest in these types of activities. Their main goal in acquiring United States edtech companies lies in building profitability, says Pep So, NetDragon’s Director of Corporate Development.
In 2015, the firm acquired the education technology platform, Promethean, a company that creates interactive displays for schools. NetDragon executives say that the Edmodo acquisition rounds out their education product portfolio—meaning the company will have tools for supporting multiple aspects of learning including; preparation, instructional delivery, homework, assignment grading, communication with parents students and teachers and a content marketplace.
NetDragon’s monetization plan for Edmodo focuses on building out content that gets sold via its platform. Similar to tools like TeachersPayTeachers, So hopes to see users putting up content on the platform’s marketplace, some free and others for a fee (including some virtual reality content), so that the community can buy, sell and review available educational tools.
As far as data privacy is concerned, So notes that NetDragon is still learning what it can and cannot do. He noted that the company will comply with Children’s Online Privacy Protection Act (COPPA), a federal regulation created in order to protect the privacy of children online, but says that the rules and regulations surrounding the law are confusing for all actors involved.
Historically, Chinese companies have faced trust and branding issues when moving into the United States market, and the reverse is also true for U.S. companies seeking to expand overseas. Companies have also struggled to learn the rules, regulations and operational procedures in place in other countries.
++++++++++++
Iran and Huawei top agenda as Pompeo meets Merkel for 45 minutes in Berlin
https://uk.finance.yahoo.com/news/pompeo-merkel-iran-huawei-agenda-110409835.html
++++++++++++
Merkel to Ratchet up Huawei Restrictions in Concession to Hawks
https://www.bloomberg.com/news/articles/2019-11-13/merkel-to-ratchet-up-huawei-restrictions-in-concession-to-hawks
+++++++++++++
more on data privacy in this IMS blog:
https://blog.stcloudstate.edu/ims?s=data+privacy
China’s NetDragon to Acquire Edmodo for $137.5 Million
NetDragon Websoft, a publicly-traded company based in Fuzhou, China, has agreed to pay $137.5 million for Edmodo.
The deal could mark the beginning of the end for the “free” model of education technology, at least for standalone education companies without other strong revenue streams to support them.
Edmodo was started in 2008 by a teacher and IT support person as a “Facebook-like” community aimed at connecting educators with students and with one another. Also like Facebook, Edmodo grew rapidly. Currently, the company, now based in San Mateo, Calif., claims more than 90 million registered users (both teachers and students) in 400,000 schools across 192 countries.
Edmodo struggled, however, to find a business model that would support its burgeoning community. It raised close to $100 million in funding, and began seeking another round last year. The company had shifted to an advertising-based model—although one in which the company was trying to move carefully and respect its audience of teachers and students.
According to a financial statement published by NetDragon, Edmodo lost $19.5 million in 2017, based on revenue of approximately $1 million.
That seems to be an increasingly popular path. A decade ago, the big education companies were traditional textbook providers such as Pearson. Now the most powerful players are technology companies that offer devices and software. At the top of the list: Google, which supports Chromebooks as well as Google Classroom, and Apple, which sells iPads, Macs and now the Schoolwork app.
By contrast, NetDragon began in 1999 and built its initial financial muscle with games. It has, however, long identified education as one of its top areas of interest. Recently the company has begun purchasing education technology assets at a rapid clip. In 2015, NetDragon paid approximately $130 million to acquire U.K.-based interactive whiteboard maker, Promethean, which gave it a hardware-based entry into classrooms.
The company, which refers to the hardware as “interactive panels,” is equipping 13,000 classrooms in Moscow with digital whiteboards.
Last year, NetDragon also acquired JumpStart, an educational game company behind iconic titles including Math Blaster. And earlier this year, it bought Sokikom, an online game-based math program.
++++++++++++
more about Edmodo in this IMS blog
https://blog.stcloudstate.edu/ims?s=edmodo