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LinkedIn Acquires Lynda.com to Increase User Engagement

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LinkedIn acquires lynda.com for $1.5 billion

Last week, LinkedIn (LNKD) announced in its press release that it agreed to acquire lynda.com—a leading training video site—for a valuation of $1.5 billion. In addition to providing online learning programs, lynda.com also certifies people who have completed a particular course. The certifications help candidates showcase their skills in front of prospective employers.

LinkedIn’s lynda.com acquisition will also help recruiters. Recruiters and corporates already pay LinkedIn for access to branded corporate pages, targeted job ads, and LinkedIn’s database of users and resumes. Certifications from lynda.com will help recruiters gain access to the specific skill sets that they require in a candidate.

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Lynda.com acquisition will help LinkedIn increase user engagement

Lynda.com’s acquisition also helps LinkedIn have a reason for users to come back to visit its site more often. Currently, LinkedIn has 347 million members on its site, according to the company. However, only a small percentage of the members visit the website on a regular basis.

According to a report from eMarketer and as the above chart shows, only 6% of the users in Canada (EWC) visit LinkedIn more than once in a day as of January 2015. In comparison, 47% of users visit Facebook (FB), 23% of users visit Twitter (TWTR), and 27% of the users visit Instagram more than once a day. As a result, LinkedIn needs more user engagement. It hopes acquisitions like lynda.com will help engage its users.

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