“When it launched in 2007, Chegg quickly became known as the Netflix for textbooks. Chegg received glowing press coverage for disrupting a stodgy industry and saving students hundreds of dollars a year. Venture capitalists fell for the idea, putting more than $140 million into the company by early 2010.

That’s when Dan Rosensweig took the helm. He quickly realized that Chegg, for all the positive attention, was a money pit. The company was approaching $100 million in annual revenue but hemorrhaging cash.”

Head on over to Bloomberg Businessweek to find out more about the source of Chegg’s troubles, and how Rosensweig is transforming Chegg to prepare the company for a time when students no longer buy—or rent—printed text books.