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by eli 4085 days ago
I don't see why one would follow from the other.
1 comments

The recently announced acq. of Lynda seems to indicate LinkedIn trying to penetrate other markets. If the revenue source from the main product is waning, they could diversify revenue streams or purchase a value-add company making their overall offering more competitive.

Maybe they are trying to reposition as a credentialing institution, where people can network, build skills, and manage their professional calendars.

I am not sure if this is the case here, but numerous acquisitions outside of core competencies could point to a strategic shift in positioning, possibly in an effort to shore up declining revenue and relevancy in the core business.

Or perhaps they're just trying to diversify their portfolio.

Perhaps similar to how while Google acquires all sorts of interesting startups, it doesn't mean they're shifting away from search/ads.

Isn't another perfectly plausible explanation that the revenue from the main product is so robust it is fueling an expansion into related markets?
Sure. However, there are two things that seem to support this:

1. Social networks seem to decline over time as newer alternatives or substitutes arise. Specifically, it seems LinkedIn is not as strong as it once was, and growth can no longer be sustained on the percentage basis.

2. Generally, a company that has amazing product market fit and strong growth in an offering would reinvest the lion-share of capital back into the business.

I don't purport to know what is the case here, just providing the counterpoint.