14 DAY TRIAL // LinkedIn, the social network for professionals, has made its first acquisition to date. LinkedIn bought mSpoke, a startup focusing on media recommendations. The social network was likely interested in the technology developed by mSpoke. The financial details of the acquisition were not disclosed.
“mSpoke and LinkedIn’s shared focus on generating relevant content make this acquisition a natural fit for us,” Jeff Weiner, CEO of LinkedIn, said. “We’re actively investing in solutions that help deliver valuable professional insights to LinkedIn members. The addition of mSpoke’s talented team of technologists makes it an even more compelling opportunity for LinkedIn.”
“mSpoke is based in Pittsburgh and was founded by chief executive officer Sean Ammirati, chairman of the board Dave Mawhinney and chief technology officer Dean Thompson... The mSpoke team has deep ties with Carnegie Mellon University, a recognized world leader in advanced computer science technologies,” LinkedIn said in a statement.
The startup is working on providing recommendations based on the user’s interests and preferences. The recommendations change over time as the algorithm hones in on what the users want, based on feedback. One possible use of the technology for LinkedIn is to provide its users with a personalized news stream, surfacing the stories that are likely to interest that particular user. The social network has been adding more social features lately.
Interestingly, this is LinkedIn’s first acquisition to date, despite being founded in 2003. The social network boasts 75 million users and is growing at a steady pace. LinkedIn raised $100 million to date and has been profitable for a while now, a very rare occurrence for social networks, yet hadn’t acquired any company so far. Private transactions of LinkedIn shares valuate the company at over $2 billion now. That’s several times less than what Facebook is worth these days, but it’s nothing to sneer at.