ETS Mulls Selling Its Crown Jewels: GRE and TOEFL Could Be Worth $500M

In what may be the most consequential shake-up in decades for graduate admissions and international student testing, The Wall Street Journal is reporting that the GRE and TOEFL exams are up for sale.

The news centers on ETS (Educational Testing Service) — the nonprofit that for decades has been the guardian of two of the most influential tests in the world of higher education: the Graduate Record Examination (GRE) and the Test of English as a Foreign Language (TOEFL). Established in 1947, ETS built both exams into global standards for graduate admissions and English-language proficiency assessments in more than 180 countries.

According to people familiar with the matter, ETS has quietly begun exploratory talks to sell both exams or bring in strategic investors. The asking price? About $500 million. That figure — roughly equivalent to the combined market capitalization of the exams as standalone businesses — signals a dramatic rethink of ETS’s mission and revenue model.

DECISION TO SELL FOLLOWS YEARS OF ROLLER-COASTER EARNINGS

The decision to divest the exams occurs in the aftermath of major declines in test taking for the GRE and for the GMAT, the two most popular tests required for entry into highly selective business school programs. GRE takers have declined sharply since the pandemic, as many graduate programs dropped or de-emphasized standardized testing. Where more than 350,000 candidates took the GRE in 2020–21, that figure fell below 200,000 in 2024–25.

The decline has forced ETS to layoff staff last year and to report years of roller-coaster financial results. In 2024, the latest year for which the organization’s finances are public, ETS reported net income of only $22.3 million on revenue of $1.1 billion. Only six years ago in 2018, ETS reported net income of $798.1 million on $2.1 billion of revenue. In fiscal 2020, with the pandemic freezing test taking, ETS suffered a massive $70.4 million loss.

The Graduate Management Admission Council (GMAC) reported a $6.8 million loss on test-taking in 2024, marking its sixth loss in seven years, fueled by a 19% drop in global GMAT volume in 2025 and the widespread adoption of test-optional policies.

SALE UNDERLINES SEISMIC SHIFTS IN GLOBAL TESTING

The Journal reported that ETS is talking to a mix of potential buyers and investors, including Singapore-based investment firm Hillhouse Capital, U.S. private-equity firms Nexus Capital and Veritas Capital, and education entrepreneur Martin Basiri, co-founder of ApplyBoard.

ETS CEO Amit Sevak has declined to comment publicly so far.

The news comes amid seismic shifts in the global testing landscape. Besides the dramatic decline in test taking, the TOEFL has faced fierce competition from nimble digital rivals — think Duolingo English Test and other online language assessments — which have grown popular because they’re cheaper, faster, and more flexible.

Decreases in international student mobility, especially from China and other key markets, have further tightened pools of potential test-takers.

Collectively, these forces have chipped away at the dominance that ETS once enjoyed. The organization has already trimmed smaller testing products and undergone workforce reductions in recent years.

IMPACT ON BUSINESS SCHOOLS OF A POTENTIAL SALE

For MBA programs and other graduate schools, the potential sale of the GRE and TOEFL could reshape admissions strategy.

Valuation and ownership change — If a private-equity firm ends up owning the tests, the priorities could shift toward profit and growth, with potential impacts on pricing, marketing, and global outreach.

Competition could accelerate — The new owners may push innovations, fast-track digital offerings, or forge partnerships overseas to grow the exams’ footprint.

Admissions trends may evolve — Schools that have gone test-optional or test-flexible may rethink the role of standardized measures if new owners position the exams differently.

This potential sale underscores how much the world of standardized testing has transformed. Once untouchable — and seemingly indispensable — evaluations like the GRE and TOEFL are now being weighed as assets that could be monetized, repurposed, or reinvented in a crowded global market.

For decades, GDP-focused economies and elite institutions leaned on ETS’s two marquee tests as gatekeepers of academic promise. Now, as graduate education and international mobility evolve, even those gatekeepers must adapt or be reimagined.

DON’T MISS: GMAC Posts Massive $6.8 Million Loss On Test Taking

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