D.C.’s Blackboard will be offering Chegg’s tutoring services on its platform, the Wall Street Journal reported Monday.
The two companies signed a three-year deal in which Chegg will pay Blackboard a base amount as well as a portion of the proceeds from tutoring and study support sold on the platform.
From the Journal:
Read the full story on WSJ.comThe three-year, renewable deal includes a minimum guaranteed payment from Chegg to Blackboard, as well as a revenue-sharing deal for each subscription Chegg sells through the channel, according to Chegg Chairman and Chief Executive Dan Rosensweig. While the guaranteed payment is so small it “would not be noticed in our [profit and loss statement],” Mr. Rosensweig said, the overall deal “could be very lucrative for both parties.”
The arrangement, specific terms of which weren’t disclosed, allows Chegg to get prime positioning in front of millions of students who use Blackboard to complete assignments, and it gives Blackboard an edge with student users who need a little extra help on homework but don’t want to cobble together information from a half-dozen different websites and publishers.
