LinkedIn Corp. (LNKD - Analyst Report) has adopted the acquisition for growth strategy. The company recently agreed to acquire a news reading and mobile content distribution company, Pulse.
Pulse is a well-known platform for content gathering from the Internet. This platform has more than 30 million users across 190 countries, accessible through iOS and Android-based newsreader applications. Available in 9 languages, Pulse has more than 9 million users throughout the United States. 750 leading publishers worldwide distribute their content using the Pulse platform.
The Pulse acquisition will bring in new talent, technology, and products, which will add to the company’s growing portfolio. Moreover, it will also enhance LNKD’s ability to deliver its services.
LinkedIn takes the acquisition for growth strategy seriously, which is evident from its past acquisition of SlideShare for $119 million in cash and stock, in May 2012.
Although acquisitions have added to the current portfolio of products and services, integration with the company’s current business model remains an issue.
Moreover, competition is also intensifying, with companies such as Facebook (FB - Analyst Report) , Google and Twitter. Similar to LinkedIn’s business model, these companies have started offering services that can cater to the professional world. Apart from hiring, the services include buying, selling and sales leads.
Linkedln currently carries a Zacks Rank #3 (Hold). The company is trying to hedge itself from the intense competition by adding new products and services to its professional networking space. However, the emergence of companies like ValueClick Inc. , offering innovative interactive solution could change the scenario rapidly over the next few years.