The slumping stock market has led Scholastic to cancel its "Dutch auction" in which it planned to buy up to $200 million of its common stock from shareholders. The company began the auction on December 28, and offered to buy back shares in the $37 to $40 per share range. Scholastic’s stock was selling at $38.69 per share at the time of the offer, but it fell to $37.61 per share on January 20.

Under terms of the offer, Scholastic had the right to terminate the auction if the major markets experienced a 10% decline in value from the December 28 date. On January 13 the NASDAQ Composite Index, where Scholastic's stock is traded, had declined by more than 10% from the close of trading on December 28, 2015. And, as of the close of trading on January 20, three of the market indices had experienced a decline in excess of 10%. Accordingly, Scholastic said it “has exercised its right to terminate the outstanding modified ‘Dutch auction’ tender offer."

As a result of the termination, Scholastic said that no shares will be purchased in the offer and all shares previously tendered and not withdrawn will be returned to tendering holders.