According to the Wall Street Journal, ETS is seeking to sell its two main exams, GRE and TOEFL, or bring in strategic investors for them.
Source: WSJ
The asking price is around $500 million, and acquisition interest has already been received from Singapore-based investment firm Hillhouse Capital, private equity firms Nexus Capital and Veritas Capital, as well as education entrepreneur Martin Basiri, among others.
This news has sent shockwaves through the study-abroad community. No one expected that ETS, which once monopolized the market and raked in profits effortlessly, would now come to this...
GRE/TOEFL Exams Not What They Used to Be
ETS is one of the world's largest non-profit educational testing and assessment organizations, and its two flagship exams, GRE and TOEFL, were once considered "must-take exams for studying abroad."
But these widely recognized standardized tests have in recent years fallen into an embarrassing situation of "plummeting test-taker numbers and tarnished reputation."
Test-Optional Policies and Rampant Cheating: GRE Loses Its Shine
For nearly a century, the GRE, or Graduate Record Examination, has been one of the important criteria for graduate admissions worldwide.
However, with the COVID-19 pandemic, many universities made the GRE optional, leading to a sharp decline in test registrations. The number of valid GRE test-takers fell from 350,000 in 2020 to 200,000 in 2024.
Source: ETS
Additionally, since the GRE introduced the "at-home" test format, cheating services have become increasingly rampant, causing student scores to surge wildly and severely damaging the exam's credibility. Many schools have explicitly stated they will no longer accept at-home test scores, and some have even eliminated the GRE requirement entirely.
Source: UCBerkeley
Even though the GRE at-home test implemented dual-device monitoring starting January 5 this year, it may be too little, too late—hardly capable of producing a dramatic turnaround.
Multiple Foes and Reform Chaos: TOEFL Suffers Major Setbacks
TOEFL is one of the world's most recognized English language proficiency tests and the most commonly used exam for English ability when applying to U.S. universities.
But facing the combined onslaught of more flexible and affordable exams like IELTS, Duolingo, and PTE, as well as the impact of U.S. government restrictions on international students and tighter visa policies, the TOEFL test-taker base has been steadily shrinking.
Coinciding with the launch of the new TOEFL format, which significantly reduces the difficulty of the speaking and writing sections, such a student-pleasing reform may actually undermine the test's recognition.
The newly introduced six-point scoring system aligned with international standards not only requires ETS to undergo a two-year "dual-score" transition period, but is also currently a hassle for schools: rather than going through the trouble of training staff and evaluating new scores, why not simply use equivalent exams like IELTS or Duolingo, which are easier to handle?
Source: ETS
Institutions like Cambridge and Oxford have temporarily blacklisted the new TOEFL, explicitly stating they will not accept TOEFL scores taken after January 21, 2026, until a review is completed. Currently, only a handful of schools have updated their language score requirements for the new TOEFL; getting a clear picture will likely have to wait until at least the next application season.
Source: Cambridge
However, in today's world where multi-country and multi-school applications are the norm, no student wants to spend extra effort taking yet another language test. Compared to IELTS, which recently reduced its fee to 1,990 yuan, and Duolingo, which costs just a few hundred yuan and delivers results in two days, TOEFL's appeal may not be strong enough for students seeking greater cost-effectiveness.
Source: IELTS
Beyond business challenges, ETS as a non-profit also faces overall financial pressure, having undertaken multiple rounds of layoffs since 2020. Given these multiple pressures, the plan to sell GRE and TOEFL is not entirely unexpected.
Source: Yahoo
The global education landscape is being reshaped, and study-abroad demands are constantly evolving. ETS's crisis is merely a microcosm of the broader picture.
For students, there is no need to worry about the exam organizations; what matters more is keeping an eye on the application requirements of target schools and programs, and finding the most suitable standardized testing strategy.
And remember, standardized tests are just one piece of the application. There is much more to prepare for study-abroad applications. We hope everyone plans well and uses their best abilities to secure that dream school offer!
