On Thursday, business-oriented social network LinkedIn confirmed that it has agreed to purchase Pulse, a leading news reader and mobile content distribution platform. The buyout will cost the network a mere $90 million in a combination of stock (around 90 percent) and cash (around 10 percent). The stock being issued in the transaction will be done so in a private placement, the company said.
"We believe we can help all professionals make smarter and more informed business decisions leveraging all the great business knowledge flowing through LinkedIn in the form of news, Influencer posts, industry updates, discussions, comments and more," said Deep Nishar, SVP of Products and User Experience. "Pulse is a perfect complement to this vision."
Pulse currently has more than 30 million users in more than 190 countries who use the service on iOS and Android-based devices. Pulse was founded in 2010 by Akshay Kothari and Ankit Gupta while they were students at Stanford University, and quickly grew to become one of the most widely used platforms for content consumption on the Internet.
"These three years have been exhilarating and inspiring," said Kothari and Gupta in a blog on the Pulse website. "We’ve learned about ourselves and our industry, grown our amazing team, and developed a community that we cherish. It’s with this past in mind that we’re proud to announce our next step: Pulse is joining the LinkedIn family."
Once the acquisition deal is closed, members of the Pulse team, including those from Engineering, Product and Design, will join LinkedIn at the company’s Mountain View, Calif., headquarters. The existing Pulse apps will continue to be supported, but both teams will begin building future generations of "professional content consumption products."
"Pulse’s core value proposition is to help foster informed discussions that spark the decisions shaping the world around us through news and information," Nishar said. "This shared view that the power of professional information and knowledge can transform lives and the world makes LinkedIn and Pulse a particularly great fit. We couldn’t be more thrilled to be working side by side with the Pulse team to create new and better ways to help professionals contribute to and leverage this collective body of business knowledge."
A SlideShare presentation outlining the deal can be found on LinkedIn’s SlideShare page here, and on the investor relations section of the LinkedIn website here.