Under Microsoft, LinkedIn Continues To Acquire Startups

Linkedin, under the purview of Microsoft since June 2016, is a formidable, if oft-derided social network. It has over 600 million users and pulled in $1.46 billion in revenue for Microsoft during the latter’s most recent fiscal quarter. It seems that Microsoft has no interest in letting LinkedIn languish after its acquisition.

According to TechCrunch, LinkedIn acquired Glint, which reporter Ingrid Lunden describes as “a startup that provides employment engagement services for businesses and other organizations.” In a labor market where job hopping is increasingly common, especially in tech, acquiring an employee engagement platform is likely a good use of cash. And historically, LinkedIn doesn’t seem too afraid of acquiring its way to growth and expanded features.

According to Crunchbase, Linkedin has acquired 21 companies. Out of that cohort, three startups (including Glint) have been acquired since Microsoft purchased the social network:

• PointDrive. Acquired in July 2016, PointDrive allowed salespeople to share docs in a portal rather than through email. No acquisition price was disclosed.

• Heighten. Another sales-focused startup acquisition, Heighten, which no longer has a working website, created “a more effective and efficient buyer/seller experience.” It raised $7.4 million during its tenure as a private, independent company.
• Glint. Glint is the only M&A deal Linkedin has made in 2018. CNBC reported an acquisition price of $400 million.

While most of the deals Linkedin has completed do not disclose a price, its biggest acquisition was likely for Lynda, an edtech startup focused on learning through structured videos, for $1.5 billion in 2015. Here’s what LinkedIn’s investment cadence looks like over time:

Notably, acquisitions have been a bit light since Microsoft paid $26 billion for LinkedIn. However, the social network did have a large run-up in purchases before being taken off of the public markets. Over half of its known acquisitions were made between 2014 to 2016.

And although LinkedIn’s acquisition pace has stalled some, the faucet has not been turned off. For startups in recruitment, hiring, and professional skills development, LinkedIn’s wallet appears to be open.