NYSE-listed online professional network LinkedIn is acquiring San Francisco and New Delhi-based SlideShare, a professional content sharing community, in a cash-and-stock deal worth $118.75 million. The transaction will be a combination of approximately 45 percent cash and approximately 55 percent stock. The acquisition is expected to close during the second quarter of 2012, subject to the completion of customary conditions, said a press release dated May 3.
SlideShare was founded in October 2006 by Rashmi Sinha, Jonathan Boutelle and Amit Ranjan. While Sinha, CEO, and Boutelle, CTO, are based in the US, Ranjan heads the company’s Delhi-based operations as COO. SlideShare enables professionals to upload and share power-point presentations. As on March 2012, the company had nearly 29 million unique visitors and users had uploaded more than nine million presentations, said the press release. The platform also enables the sharing of presentations across the web. Nearly 7.4 million presentations hosted by SlideShare are currently embedded across more than 1.4 million unique domains.
LinkedIn announced the acquisition alongside its first quarter earnings, for the three months ended March 31, 2012. Revenues for the quarter stood at $188.5 million, up 101 per cent from $93.9 million in the corresponding quarter last year. Net income was reported at $5 million, compared to $2.1 million in the first quarter of 2011, said a press release. Revenues from premium subscriptions stood at $37.9 million and represented 20 per cent of the company’s total revenues. The US market accounted for 64 per cent of revenues or $120.8 million. As on March 31, the company, founded in May 2003, had 161 million members using its service globally.
“Presentations are one of the main ways in which professionals capture and share their experiences and knowledge, which in turn helps shape their professional identity,” said LinkedIn CEO Jeff Weiner, in the release announcing the acquisition. Commenting on the deals Rashmi Sinha said, “We built SlideShare to help professionals share presentations and connect people through content. What we can build with LinkedIn is the most natural extension of this vision.”
Read what Deep Nishar, senior vice president of LinkedIn’s product and user experience, says about the acquisition at the LinkedIn blog.
Also read what Sinha says about the deal on the SlideShare blog.
SlideShare currently employs 55 people and has raised $3 million in funding. This includes angel funding from Ariel Poler, Dave McClure, Jonathan Abrams, Hal Varian, Yee Lee, Saul Klein and Mark Cuban and a Series A round from Silicon Valley-based venture capital investor Venrock.
Images Courtesy: SlideShare and LinkedIn