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This paper offers a grounded conceptual analysis of the first attempt in one Northwestern state to develop a partnership between a private, for-profit online educational provider and a public school district to deliver state-wide virtual online learning. Theoretically, it connects organizational dynamics with critical considerations in efforts to provide innovative ways of meeting educational challenges of increasing costs and shrinking tax bases. Through a case-base analysis, the paper explores issues of privatization, innovation, and the true meaning of “partnership”. The analysis demonstrates that, if educational organizations wish to ensure student-learning goals are not usurped by for-profit gain, they are more likely to do so when they proactively and cautiously enter into these relationships, retaining oversight power and transparency.