Daily Management Review

LinkedIn to buy educational portal Lynda.com


LinkedIn has signed a purchase agreement for $ 1.5 billion with online educational service Lynda.com, - as repoted in a statement published on the site of the world's largest professional social network.

52% of the transaction amount will be paid in cash and 48% with shares of LinkedIn. It is expected that the transaction will be closed in the second quarter of 2015.

The deal suggests that most of the employees will leave Lynda.com for LinkedIn.

- LinkedIn and Lynda.com’s missions are highly similar. Both companies are eager to help professionals do their job better - the press release presented the words of LinkedIn’s CEO Jeff Winer. He also noted the quality of the extensive library of Lynda.com stored in video, which helps people develop their skills and achieve career growth. In conjunction with hundreds of millions of members and millions of jobs represented in LinkedIn, Lynda.com be able to change the way for people to search for their chance, Winer said.

The social network LinkedIn has existed since May 5, 2003. The number of users exceeds 300 million, each of them is looking for online job, hire employees, or seek advice from leading industry experts. The company's capitalization on the New York Stock Exchange is 31 billion dollars.

Acquisition of Lynda.com is the largest purchase in the history LinkedIn. In July 2014, the social network acquired for $ 175 million Bizo company, which specialize in target marketing for businessmen and professionals in various fields.

Lynda.com website was created in 1995. It published nearly 6,000 educational courses in a variety of areas including business and foreign languages. Audience share is estimated at 4 million people. The company, which was founded in the 90s, looks veteran compared to today's start-ups. It offers a virtual library of more than 1.2 thousand educational videos. Unlike the Khan Academy, courses on Lynda.com are conducted by leading industry experts, professionals and experienced teachers. Monthly subscription for a student cost $ 25.

In 2010, more than 1 thousand hours of educational content has been downloaded on the site. Despite of the fact that the service provides online access, it cooperates with almost all the schools of "Ivy League", as well as companies such as Disney, Time Warner, Sony, Pixar, ABC and HBO, which help to supplement educational content. Also, Lynda.com has one significant difference from the start-ups that make a model of online video courses. Service has its own studio and produces 90% of the content on their own.

source: techcrunch.com