With an eye on tapping the professional skills education market, LinkedIn Corp (NYSE:LNKD) signed a big deal with Lynda.com, buying it for a record $1.5billion. The California-based online educational company offers subscription-based video courses to thousands of students in software, technology, business and creative skills in multiple languages.
The massive deal is said to end during the second quarter. Touted to be fourth-biggest deal in the history of social media, the business move will help the 12-year old company enlarge its audience and the market it serves.
Considering the professional certification and employee education market is worth $30 billion, the buyout helps LinkedIn in expanding its revenue stream, believes the major social networking website.
Analyzing the impact of the deal, a noted market expert said that the deal has, beyond doubt, fortified the presence of LinkedIn Corp (NYSE:LNKD) in the educational technology, career advancement and social networking markets. Further, the deal will enable employees and subscribes of LinkedIn enrich their skills.
“Terming the deal as LinkedIn’s smart move and will enhance the standing of the professional network in the eyes of its members, marketers and recruiters,” said an analyst belonging to Forrester.
“If LinkedIn is able to combine the educational technology well with its platform, then the deal will work out wonders for the former in near future”, opined another marketing analyst.
What is really important is that how LinkedIn leverages the reputation of Lydia’s, for instance, its ability to integrate Lynda’s catalog of approximately 3,500 online video courses will set the tempo of the networking site.
Adding his voice on the deal, another market analyst observed that prominent display of updates on the details of concluded Lynda.com classes and professional certificates of LinkedIn members will yield far-fetching results.
Jeff Weaner, LinkedIn’s CEO, in his blog, said that his networking company believes in the basic objective of linking people with opportunities and expressed the hope that the acquisition will help in mopping up revenue from its 347 million users.