NEW YORK — Washington Post Co. shares fell almost 7 percent Friday as a cloud of uncertainty gathered over its biggest revenue and profit driver: the Kaplan education business.
The Post Co. said proposed changes in federal education policy would have an uncertain effect on Kaplan.
The concerns that lawmakers have about the type of for-profit college that Kaplan runs were underscored this week. The U.S. Senate heard testimony Wednesday on a Government Accountability Office investigation that found questionable recruiting tactics, high loan-default rates, and low graduation and job-placement rates at for-profit colleges.
The Post Co., which is selling Newsweek magazine as it pulls back from its traditional identity as a publisher, has relied on Kaplan for several years now to drive growth.
