Pomona College Officially in “Exclusive Partnership Negotiations” with Claremont Graduate University

Pomona and CGU announce beginning of exclusive negotiations.

Pomona College and Claremont Graduate University announced in parallel statements Thursday afternoon that they have entered exclusive negotiations on a “potential partnership,” described as a parent-subsidiary structure. Sources familiar with the matter told the Independent that the institutions’ respective boards signed only a non-binding letter of intent, meaning negotiations could be broken off at any point.

CGU chose Pomona over a number of other partnership candidates, with the institutions’ boards of trustees formally agreeing to begin talks last week. Alongside the announcement, both institutions have created websites covering the “partnership initiative,” which include details about the working groups of administrators, trustees, and faculty that explored the deal, as well as a frequently-asked-questions page.  

One major question raised is the structure of the “partnership.” Pomona’s FAQ states that the school is “considering a parent-subsidiary structure.” Despite this effectively being an acquisition, non-profit acquisitions or mergers typically don’t involve a purchase or cash transaction. Instead, Pomona would most likely only assume CGU’s liabilities. CGU’s latest public financial statements show over $50 million in liabilities, meaning Pomona would be adding that sum to its existing pile of $420 million in liabilities as of 2024.

The “parent-subsidiary” structure would raise further questions regarding the degree of separation between institutions. The FAQ states that, “[a]ny partnership would need to preserve both institutions’ distinct identities and academic missions while creating opportunities for collaboration where it could make sense,” while elsewhere clarifying that “CGU and Pomona would remain distinct institutions with separate admissions, academic programs, faculty, and degrees.” Regarding CGU’s “interests,” the CGU FAQ answers that a “partnership with Pomona would be structured to protect CGU’s core institutional interests by preserving its name, mission, graduate identity, and academic autonomy.” Furthermore, the proposed structure would apparently preserve CGU faculty’s tenured positions.

In its new responsibility as “parent” of CGU, however, Pomona would likely take over financial management of the graduate university, which may extend to human resources, IT, and facilities management. Sources familiar with the negotiations told the Independent that Pomona has already identified that some CGU buildings require extensive maintenance and repair work, and the graduate school may, at least initially, require some operational subsidies from Pomona. Increased maintenance and construction workload may prove tricky for Pomona to navigate given the looming construction of its Center for Global Engagement and possible smaller projects like the installation of air conditioning in dorms.

At the top, CGU’s board would likely be “reset” by Pomona, though it would continue to exist, reporting to Pomona’s own Board of Trustees. The composition of CGU’s new board would probably be negotiated between Pomona and CGU’s current board.

Pomona’s FAQ also addresses questions raised about Pomona’s motivations or interests in acquiring CGU. As previously reported by the Independent, Pomona became involved in early discussions with CGU in order to prevent a bid from the Arizona State University system. Indeed, the FAQ answers that the “partnership could help ensure the Consortium’s stability and allow Pomona to play a role in shaping CGU’s future, rather than leaving that outcome to external parties whose interests might not align with The Claremont Colleges’ values and collaborative model.” Further, Starr stated in her announcement that the board and a working group assembled to lead Pomona’s exploration of a CGU deal had “considered whether this partnership may, in fact, be essential to protecting and preserving the Consortium.”

In the official announcement, Starr also highlighted that Pomona and CGU were already closely related in their history:

“Both Pomona and CGU have been part of the Consortium since its founding 100 years ago by Pomona President James Blaisdell. CGU was the original graduate institution within our distinctive higher education Consortium, and Pomona and CGU share a century of partnership based in President Blaisdell’s founding vision of collaborative educational excellence.”

The signing of a letter of intent is only the first step in an acquisition process, and any finalized agreement is likely over a year away. According to sources familiar with the process, a more extensive due diligence process would begin in the new year, and extend until the end of the Spring 2026 semester, with negotiations possibly stretching a year beyond that.

Both institutions have emphasized the role of “shared governance” while talks continue, though faculty the Independent spoke to lamented that they had been kept in the dark during the first phase of the process. Both “partnership initiatives” websites have an anonymous feedback form, and Pomona’s lists further “engagement opportunities,” including a town hall, “informal drop-in conversations,” and a faculty forum. 

“I have appreciated the efforts and insights of all members of our Working Group during this initial period of due diligence, and I look forward to our entire Faculty joining in these conversations next semester,” Pomona Chair of the Faculty Benjamin Keim, who served on the college’s working committee, told the Independent.

The vast majority of Pomona’s faculty were only officially informed of the talks by President Starr in a closed-doors meeting last Wednesday, shortly before the letter of intent was signed.