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Rosetta Stone Inc.

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Rosetta Stone Inc.
Company typeSubsidiary
IndustrySoftware development
PredecessorFairfield Language Technologies
Founded1992; 32 years ago (1992) in Harrisonburg, Virginia, United States
Headquarters
Arlington, Virginia
,
United States
Area served
Worldwide
Key people
John Hass (CEO)
Tom Pierno (CFO)
ProductsRosetta Stone Language Learning, Rosetta Stone Kids Reading, Fit Brains, Lexia Learning, Tell Me More
RevenueDecrease $264.6 million (2013)
Decrease $18.4 million (2013)
Decrease $16.1 million (2013)
Total assetsIncrease $290.8 million (2013)
Total equityDecrease $131.2 million (2013)
OwnerNews Corporation
(1992-2006)
ABS Capital Partners and Norwest Equity Partners
(2006-2020)
Cambium Learning Group
(2020-2021)
IXL Learning
(2021-present)
Number of employees
1,375 (2014)
Websitewww.rosettastone.com

Rosetta Stone Inc. is an American education technology software company that develops language, literacy and brain-fitness software. Best known for its language-learning products, in 2013, the company expanded beyond language into education-technology with its acquisitions of Livemocha, Lexia Learning, Fit Brains, and Tell Me More.[1] In 2021, it became a subsidiary of IXL Learning.[2]

History

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Beginnings

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According to the company, founder Allen Stoltzfus learned German through immersion while living in West Germany and found it relatively easy. In the 1980s, Stoltzfus began learning Russian in a classroom setting, but found the classroom setting much more difficult. He wanted to simulate the German experience, and he decided to use computer technology to create a similar learning experience. He enlisted the aid of his brother-in-law, John Fairfield, who held a PhD in computer science.[3]

By 1992, CD-ROM technology made the project possible. Allen and John, along with Eugene Stoltzfus (Allen's brother), formed a company known as Fairfield Language Technologies in Harrisonburg, Virginia. They hired Greg Keim and Michael Silverman along with other significant team members. They released their software product under the title The Rosetta Stone.[4]

2000s and IPO

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In 2003, the company announced the hiring of Tom Adams, a businessman with international experience, as President and CEO.[5]

In 2004, Rosetta Stone Ltd. established its Endangered Language Program to contract with endangered language communities interested in custom software development to support language revitalization efforts.[6]

In 2006, the company changed names to Rosetta Stone, Ltd., and converted from an S corporation to a C corporation.[citation needed] Ownership transferred to investment firms ABS Capital Partners and Norwest Equity Partners.[citation needed]

On September 23, 2008, Rosetta Stone Inc. filed an Initial public offering with the Securities and Exchange Commission.[citation needed] On April 15, 2009, the company was listed as the Rosetta Stone on the New York Stock Exchange, raising $112 million in its initial public offering of stock shares.[7] In its first full day of trading on the New York Stock Exchange, the stock gained 39% from its opening price.[8] After a strong opening, however, the stock stumbled amid reports of weaknesses in Rosetta Stone's US business, resulting in the cancellation of a second offering, and a disappointing year end price just 5 cents off its opening price.[9] The stock trades under ticker symbol RST.[7][8] As of December 2015, the stock was at approximately $29.2 (USD) per share.[10]

2010s

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In 2013, it acquired four companies—Vivity Labs Inc (creators of the Fit Brains Trainer),[11] Livemocha,[12] Tell Me More,[13] and Lexia Learning.[14]

On September 17, 2013, Rosetta Stone announced the launch of a new Kids Division.[15] In November 2014, it debuted its first kids reading program for consumers, Rosetta Stone Kids Reading.[16]

Since 2016, the company's president and CEO has been John Hass.[17]

Rosetta Stone is transitioning to a cloud-based business model that goes beyond language learning and deeper into education technology.[citation needed]

Acquisition by Cambium

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On August 31, 2020, Rosetta Stone announced that they had entered an agreement to be acquired by Cambium Learning Group for $792 million.[18]

Acquisition by IXL Learning

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On March 17, 2021, Rosetta Stone was acquired by IXL Learning from Cambium Learning Group.[19]

Offices

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References

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  1. ^ "Rosetta Stone to buy Vivity Labs, maker of Fit Brains - Washington Business Journal". Archived from the original on 2014-03-18.
  2. ^ "Rosetta Stone sells again fewer than six months after deal with Dallas company closed". www.bizjournals.com. Retrieved 31 August 2021.
  3. ^ "» The one and only John Fairfield - Crossroads Magazine - Eastern Mennonite University". Crossroads Magazine. Retrieved 2024-03-01.
  4. ^ "#Rosetta Stone Ltd | Explore Tumblr Posts and Blogs | Tumpik". www.tumpik.com. Retrieved 2022-10-20.
  5. ^ "Rosetta Stone History: Founding, Timeline, and Milestones". www.zippia.com. 2020-08-27. Retrieved 2022-10-20.
  6. ^ "New software to aid in keeping Navajo language alive". Santa Fe New Mexican. 2008-06-01. Archived from the original on 2012-02-29. Retrieved 2020-09-02.
  7. ^ a b CNBC Article Covering the IPO, retrieved 4/17/09
  8. ^ a b Stock Coverage of Rosetta Stone at Wikinvest
  9. ^ "IPO comeback in 2009 sets stage for busy 2010". The Sydney Morning Herald. 5 January 2010. Retrieved 20 November 2015.
  10. ^ "Yahoo Finance". Retrieved 19 December 2015.
  11. ^ "Rosetta Stone to Acquire Fit Brains Creator Vivity Labs, Will Enter Fast-Growing Brain-Training Market". MarketWatch. Retrieved 20 November 2015.
  12. ^ Karsten Strauss. "Rosetta Stone Acquires Livemocha And Expands Its Reach In The Cloud". Forbes. Retrieved 20 November 2015.
  13. ^ "Rosetta Stone Acquires Another Language Learning Company". EdSurge. 11 December 2013. Retrieved 20 November 2015.
  14. ^ "Rosetta Stone Acquires Lexia Learning for $22.5 Million". thejournal.com. Retrieved 20 November 2015.
  15. ^ "Rosetta Stone Launches Kids Division, Introduces Blended Reading & Language Product for Children 3-6" (press release). rosettastone.com. Retrieved 20 November 2015.
  16. ^ "Rosetta Stone makes big step into education-tech market - Washington Business Journal". Archived from the original on 2014-11-10.
  17. ^ "Leadership - Executives & Board Members - Rosetta Stone®".
  18. ^ Weil, Dan (2020-08-31). "Rosetta Stone to Be Acquired by Cambium Learning for $792M". TheStreet. Archived from the original on 2020-08-31. Retrieved 2020-08-31.
  19. ^ "IXL Learning Acquires Rosetta Stone" (Press release).
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