The world’s leading professional social network site LinkedIn has made its intention clear on acquiring another leading online knowledge based company - Lynda.com.
The company is talking about a $1.5 billion deal. The takeover is likely to come during the 2nd quarter of 2015. It will be a combo of 52 per cent cash and 48 per cent in stock.
LinkedIn, currently, is going strong with about 350 million worldwide active members.
Lynda.com was founded by Lynda Weinman and Bruce Heavin in 1995. The website has grown and it is generating over $100 million in yearly sales on revenue after it raised to $103m Series A in the year 2012 and an impressive $186m Series B in January 2015. Lynda.com had acquired some smaller competitors over the past few months.
In January 2015, Lynda was offering about 5,700 courses with video tutorials numbering at 255,000. It also generated $150 million in 2014 with 55 per cent from individual subscribers who are paying $25 monthly to access resource lessons.
LinkedIn CEO Jeff Weiner said that Lynda would become part of the company’s Economic Graph for mapping the world’s people, careers, knowledge and skills. LinkedIn has been has heavily expanding its operations into higher education and certifications sector for some months now. With the acquisition of Lynda.com, LinkedIn would be adding to its network the missing link -- the actual learning, to its vast portfolio.
Sources also said that most of the Lynda.com staff would be retained by LinkedIn.