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Microsoft’s LinkedIn Expands, Acquires Glint

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About the deal

On October 8, Microsoft’s (MSFT) corporate social network platform LinkedIn bought Glint—an employee engagement platform. The deal’s financial terms weren’t disclosed. The acquisition will allow LinkedIn to combine Glint’s powerful employee interactive tools like Employee Engagement, Employee Lifecycle, Manager Effectiveness, and Team Effectiveness with its own product portfolio. LinkedIn might gain some of Glint’s key clients like Dish Network (DISH) and United Airlines (UAL).

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LinkedIn’s expansion goals

Microsoft has decided to keep investing in the LinkedIn business. Microsoft plans to offer a one-stop solution to its members from recruitment to training and development. Including Office 365, Enterprise Resource Planning, and Customer Relationship Management solutions in one place might accelerate the demand for Microsoft’s service across corporate users.

In the above graph, you can see LinkedIn’s revenue growth in the last five quarters. In the last three quarters, the revenues showed an upside trend buoyed by new innovation and increased membership. At the end of the fourth quarter, LinkedIn had 574 million members. LinkedIn added ~144 million subscribers at an average of 72 million each year. In the fourth quarter, the usage time on LinkedIn also increased 41% year-over-year. The latest acquisition could add value to LinkedIn’s product offerings and drive subscriber growth.

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