A recent story on AllThingsD.com detailed LinkedIn’s acquisition of the newsreader app Pulse. The buyout cost LinkedIn $90 million, so it is no small purchase by any means. It was said that Pulse was in discussions with companies such as Yahoo, Microsoft, Gannett and Amazon, but in the end LinkedIn saw the most value in Pulse.
Currently, over 200 million users use LinkedIn, and Pulse will ultimately drive more traffic to the site if the news feeds take off. This is significant to LinkedIn because more traffic equals more ad business, one of the sites few resources of revenue.
Pulse is a news aggregator app on Apple’s iTunes store that is host to over 30 million users that read more than ten million stories every day using the app. LinkedIn is looking to expand beyond being known as just a site for resumes for recruiters and professionals, and they think Pulse will be a huge stride in driving people to return to the site on a daily basis.
Pulse will allow LinkedIn to focus on delivering important news to its users to keep professionals coming back to seek the news they want as well as give publishers a new way to share their content.