Pomona College Poised to Enter Exclusive Acquisition Negotiations with Claremont Graduate University

Claremont Graduate University. Photo Credit: Jacob Pippel.

Pomona College is close to entering exclusive negotiations to acquire Claremont Graduate University, multiple sources familiar with the matter told the Independent. CGU, which announced in April that it was seeking “a strategic partner or partners,” was courted by a pool of suitors including Arizona State University, Loyola Marymount University, and Northeastern University. 

Pomona is likely to enter into a preliminary agreement with CGU by the end of next week, with a letter of intent or memorandum of understanding to be signed by the two institutions thereafter. Such an agreement would be non-binding, and a lengthy due-diligence and negotiation process would follow.

CGU, faced with financial challenges, concluded in 2024 that it did “not have the financial resources to continue going it alone as a graduate-only, comprehensive university,” according to the April announcement. In 2024, then-Interim President Tim Kirley said the institution had been running a deficit for over a decade; its most recent publicly available financial filings show $347 million in assets and over $50 million in liabilities. The university, celebrating its centennial this year, retained consulting firm and investment bank Tyton Partners to facilitate talks with potential partners. 

In August, Pomona formed a special committee of trustees and administrators to explore a CGU deal. A few senior faculty members were brought into discussions, though the Independent was unable to confirm whether they are officially on the committee. Sources with knowledge of the situation told the Independent that Pomona entered the negotiations in part to prevent Arizona State University – which was seeking an expansion in their online education programming  – from becoming the frontrunner, with Pomona leadership concerned that such an outcome would change the character of the Claremont Colleges Consortium.

 “Certainly, Pomona College has no interest whatsoever in starting its own graduate program.  This isn't that. This isn't about Pomona's own ambitions. It's about defense,” a former Pomona dean speculated to the Independent. “It would be terrible for Pomona if the wrong kind of outside institution purchased or merged with CGU.”

“CGU has entered a process to ensure its long-term viability. We’re aware of that process, and to maintain its fairness, we cannot offer comment at this time,” a spokesperson for Pomona told the Independent. 

In a statement to the Independent, CGU Vice President for Strategy Patricia Easton stated that the institution “has been exploring a range of potential partnerships to strengthen the university’s future,” and is “currently in the priority partner identification phase.” She was unable to comment on “specific parties or details.”

Rumors of a CGU acquisition have caused unrest among Pomona faculty, many of whom feel they are being left out of a consequential decision for the college. 

“Most of the faculty is entirely out of the loop and has no idea any of this is happening. If these rumours are true there could certainly be blowback within the institution and among the faculty,” a Pomona professor who requested anonymity told the Independent. 

Another professor told the Independent that if Pomona pursues an acquisition without greater faculty input, President Starr could face a formal vote of no confidence by faculty. Chair of the Faculty, Classics Professor Benjamin Keim, did not respond to a request for comment.

Faculty are also frustrated that the acquisition, likely a several hundred-million dollar deal, is being discussed while Pomona is in year three of a five year austerity plan, with budgets being tightened across departments. 

A source familiar with the negotiations told the Independent that Pomona’s overall financial security is not of concern, however, and could easily sustain such an acquisition. 

The structure of a potential Pomona-CGU acquisition or merger is still unclear. According to people familiar with the matter, a likely outcome could be that CGU becomes a Pomona asset or subsidiary, but continues to operate as its own institution with some Pomona management. Pomona fully absorbing CGU and effectively becoming “Pomona University” would be improbable, and likely face significant blowback from faculty, alumni and students. 

It is possible that ownership of CGU could allow Pomona to expand its joint programming with the graduate school, including CGU's “4+1” programs for Claremont undergraduates. These programs enable students to obtain a Bachelor’s and Master's degree in five years or less, similar to what Claremont McKenna offers through its Robert Day School of Economics and Finance.

While owning and operating a graduate school makes little sense and would be logistically difficult for Pomona, the true value of an acquisition lies in the property CGU sits on. CGU’s campus is adjacent to Pomona’s, meaning an acquisition could potentially allow Pomona to expand its physical footprint, which is at present limited by residential areas and the other Claremont Colleges. 

Pomona’s Board of Trustees will likely vote on a decision to enter exclusive negotiations during the final meeting of 2025, which is taking place later this week. Next steps would include a letter of intent being drafted and agreed upon by CGU and Pomona, with such a letter laying out a timeline for negotiations and due diligence process. It could take over a year before any acquisition actually takes place, and if negotiations were to fall through, CGU could reopen for other bids. The deal would also have to be approved by third parties, including Pomona and CGU’s creditors, state and federal regulators, and accreditation agencies.

If the acquisition were to go through, it appears to be the first of its kind in U.S. higher education, which in recent years has typically only seen small colleges and graduate programs swallowed up by large universities.

Claremont McKenna declined to comment. Scripps, Pitzer, Harvey Mudd, Keck Graduate Institute and The Claremont College Services did not respond to a request for comment. 

Kendall White contributed reporting.

This is a developing story, and may be updated as new information becomes available.

Editor's note: This article has been updated to include how Claremont students can currently get a 1-year masters through CGU.