Rosetta Stone
Language learning software company owned by IXL Learning, offering immersive language learning programs in over 25 languages.
Company Type
public
Founded
1992
Headquarters
Arlington, Virginia, USA
Revenue
~$200M (est., part of IXL Learning)
Employees
~1,000
Primary Market
Global
About Rosetta Stone
Rosetta Stone provides immersive language learning software and digital solutions for individuals, educational institutions, and organizations. The company's core methodology emphasizes contextual learning and immersion, similar to how people learn their native language.
Key products and services include:
- Interactive language courses for 24+ languages
- Cloud-based learning platforms with mobile accessibility
- Live tutoring sessions with native speakers
- Speech recognition technology for pronunciation practice
- Corporate language training solutions
- Educational institution programs for K-12 and higher education
- Kids reading and language programs
The company operates on a subscription-based model, offering various subscription tiers for individual learners, families, and organizational clients. Rosetta Stone has expanded from physical software packages to fully digital, cloud-based solutions.
History of Rosetta Stone
Rosetta Stone's origins trace back to the 1980s when founder Allen Stoltzfus learned German through immersion while living in West Germany. When he began learning Russian in a classroom setting in the 1980s, he found it much more difficult and wanted to simulate the German immersion experience using computer technology.
Stoltzfus enlisted the help of his brother-in-law, John Fairfield, who held a PhD in computer science, along with his brother Eugene Stoltzfus. By 1992, CD-ROM technology made their vision possible, and they formed Fairfield Language Technologies in Harrisonburg, Virginia. They released their software product under the name The Rosetta Stone.
The company grew steadily through the 1990s and early 2000s, establishing itself as a leader in computer-based language learning. In 2003, the company hired Tom Adams as president and CEO, bringing international business experience to drive expansion.
In 2006, the company changed its name to Rosetta Stone, Ltd. and converted from an S corporation to a C corporation. Ownership transferred to investment firms ABS Capital Partners and Norwest Equity Partners.
Rosetta Stone filed for an initial public offering in September 2008 and went public on the New York Stock Exchange on April 15, 2009, raising $112 million. The stock traded under ticker symbol RST and had a strong first day, gaining 39% from its opening price.
The 2010s saw significant expansion through acquisitions. In 2013, Rosetta Stone acquired four companies: Vivity Labs Inc (creators of Fit Brains Trainer), Livemocha, Tell Me More, and Lexia Learning. The company also launched its Kids Division in 2013 and debuted its first kids reading program in 2014.
John Hass became president and CEO in 2016, leading the company's transition to cloud-based business models and expansion beyond language learning into broader education technology.
In August 2020, Cambium Learning Group announced it would acquire Rosetta Stone for $792 million. However, this ownership was short-lived, as IXL Learning acquired Rosetta Stone from Cambium in March 2021, bringing the company under its current ownership structure.
Brands Owned by Rosetta Stone
Rosetta Stone owns 0 brands in our database.
Rosetta Stone Ownership: Pros & Cons
Advantages
- +Strong brand recognition and reputation in language learning
- +Comprehensive language library with 24+ languages
- +Established immersive teaching methodology
- +Integration into IXL Learning's educational ecosystem
- +Diverse market segments including consumer, education, and enterprise
Considerations
- -Intense competition from free and low-cost language apps
- -Need for continuous technology innovation and updates
- -Market saturation in popular language learning segments
- -Integration challenges following multiple acquisitions
- -Dependence on subscription revenue models
Frequently Asked Questions About Rosetta Stone
Is Rosetta Stone a publicly traded company?
No, Rosetta Stone is currently a private company owned by IXL Learning. It was previously publicly traded on NYSE under ticker RST from 2009 to 2020.
Who owns Rosetta Stone?
Rosetta Stone is owned by IXL Learning, which acquired the company from Cambium Learning Group in March 2021. Cambium had acquired Rosetta Stone in August 2020.
Who founded Rosetta Stone?
Rosetta Stone was founded in 1992 by Allen Stoltzfus, John Fairfield, and Eugene Stoltzfus under the name Fairfield Language Technologies.
Was Rosetta Stone ever publicly traded?
Yes, Rosetta Stone was publicly traded on the New York Stock Exchange from 2009 to 2020 under the ticker symbol RST before being acquired by Cambium Learning Group.
What services does Rosetta Stone offer?
Rosetta Stone provides immersive language learning software for 24+ languages, including interactive courses, live tutoring, speech recognition, and solutions for individuals, schools, and businesses.
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