Select Language:
The world’s leading non-profit organization dedicated to educational testing and assessment is reportedly exploring options to sell its Graduate Record Examination and Test of English as a Foreign Language businesses or to attract investors. This move comes amid declining numbers of Chinese students pursuing education in the United States, increased market competition, and recent policy shifts.
The organization aims to sell these units for approximately $500 million and has shortlisted several potential buyers. According to sources, negotiations are underway with companies such as Hillhouse Capital from China, Nexus Capital Management, and Veritas Capital from the United States, along with Iranian-born entrepreneur Martin Basiri, founder of the online study-abroad platform. The organization has not publicly commented on these developments.
A teacher based in Shanghai, who has spent a decade preparing students for the TOEFL exam, mentioned that the number of students heading to the US has dropped significantly since the COVID-19 pandemic. Last year, the number of students compared to pre-2019 levels was only about 40 percent at its peak.
Both the GRE and TOEFL exams have faced significant challenges recently, including suspension during the pandemic. Additionally, some prestigious universities, such as Harvard and Stanford, have revised their admissions policies to no longer require the GRE for certain graduate programs.
Data indicates that international students in the U.S. increased by 5 percent to 1.18 million in the 2024/2025 academic year. China remains the second-largest source, with around 265,000 students, marking a 4.1 percent decline year-over-year.
Market competition from alternative English proficiency tests also affects TOEFL’s market dominance. Some students are opting for other assessments like IELTS, the Australian Education Assessment Services, or Duolingo English Test. The same teacher noted a growing trend among students considering countries such as the UK, Australia, and Canada for their studies, with nearly 80 percent of students at his institution choosing IELTS over TOEFL last year.
In the past year, U.S. policies under the previous administration imposed restrictions on federal funding and recruitment efforts at many colleges and universities, along with tighter visa regulations. These measures have significantly impacted the country’s attractiveness to international students seeking higher education.
The organization was founded in 1947 and manages various standardized tests, including the Test of English for International Communication, the Praxis exam for teacher certification, and others. It also developed the Scholastic Assessment Test (SAT) and Advanced Placement courses for college admissions, though these arrangements were canceled in 2024, resulting in a loss of about $300 million annually in revenue.
ChatGPT
Perplexity
Gemini AI
Grok AI
