Pearson is already so large relative to emerging school improvement industry that its acquisition of Harcourt Assessment and Harcourt Education International for $950 million in cash is almost not newsworthy.  In principle, it can already buy and sell every school improvement provider. See the press release here.

There are two implications for school improvement providers.

First, by controlling more and more of the industry’s strategic high ground - assessment and information, Pearson is improving its ability to dominate the remainder of the value chain – and particularly curriculum and instructional programs. This its "cash cow" and the space most school improvement providers now operate.  For an earlier commentary on this click here.

Second, your editor refers to Pearson and its fellow multinational publishers as the old industry. Not only does this acquisition blur the line between old and new, it begins to suggest that Pearson may become the old industry’s principal member.

In today's New Education Economy®, columnist Bill Bavin of Education Capital uses the Pearson-Harcourt deal as an example of how to use his Education Industry Market Matrix as an analytical tool. NEE® will be released later today on the edbizbuzz site and available for free download until June. 1.