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Amazon (NASDAQ:AMZN) is all set to acquire TenMarks. TenMarks is a company that helps teachers and parents deliver the innovative and personalized mathematics curriculum to the students across the country.

The company intends to further develop the award-winning math programs and also make them available to the millions of students through its Kindle ecosystem. Amazon also wants to expand its reach in the education industry through this acquisition, as these programs have been used by the tens of thousands of schools.

As said by Dave Limp (Vice President, Amazon Kindle):

Amazon and TenMarks share the same passion for student learning. TenMarks's award-winning math programs have been used by tens of thousands of schools and Amazon engages with millions of students around the world through our Kindle ecosystem.

TenMarks facilitates the development of the personalized curriculum for the students, according to their strengths and weaknesses. Teachers can register and access its product for free, while being able to opt in for the premium features later, as required. The product quality is trusted by its users as evident from the statement below:

According to Sujata Bhatt, founder of the Incubator School and a certified teacher, who spent 11 years at Grand View Boulevard Elementary in Los Angeles Unified School District.

I've used TenMarks for the past two years at Grand View with fourth and fifth grade students to help a diverse group of students achieve in math and take ownership of their own learning, TenMarks's products are designed to enable both students and teachers to be in the driver's seat by seeing where they're successful and where they need to revisit. TenMarks is an important part of our math plan this year.

The e-learning industry:

e-learning is one of the fastest growing segments of the education industry. The major advantage of e-learning over the traditional education system is "any time, any where" learning, which allows the learners to learn according to their convenience.

The U.S. is the largest market for the e-learning industry, with the large number of online collages and the huge variety of online courses. There are millions of students in the U.S. who enroll for online courses every year. The e-learning market is also evolving in other countries like China, the U.K., Australia, etc. Amazon has a strong presence in all these markets.

Major players in the e-learning industry include Apollo (NASDAQ:APOL), DeVry (NYSE:DV), Kaplan (WPO), ITT Educational Services (NYSE:ESI), Bridgepoint Education (NYSE:BPI), K12 (NYSE:LRN), etc.

Market size:

Per the estimates, the global market for e-learning expects to reach $255.5 billion by the year 2017, representing a CAGR of 23% since 2012. The U.S. market for e-learning expects to reach $65 billion by the year 2017, representing a CAGR of 15% since 2012.

Conclusion:

Once again, Amazon is doing what it has been doing for the last many years. It's building the proprietary content for its customer base. The basic vision behind the acquisition is to further develop these award-winning math programs for its existing customer base and to attract new customers. The company intends to offer these products through the multiple platforms. For the company this is a small step towards the proprietary educational content. Still, a lot needs to be done if the company wants to become a serious player in the multi-billion dollar e-learning industry. It will have to develop many more products and will have to cover many more subjects.

  • Immediate benefit:

The immediate and biggest benefit of the planned acquisition will be that the company will be able to place Kindle as a much more attractive option among the younger generation, which is the much sought after user segment among all technology driven companies (including the company's competitors) like Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Yahoo (NASDAQ:YHOO), Microsoft (NASDAQ:MSFT), etc.

  • Long-term outlook:

Amazon has the capabilities to become a major player in the e-learning industry. The company has made it clear that it wants to develop more content and applications related to the e-learning industry.

As said by Dave Limp (Vice President, Amazon Kindle):

Together, Amazon and TenMarks intend to develop rich educational content and applications, across multiple platforms, that we think teachers, parents and students will love.

But it's too early to say whether the company wants to be a serious player in the e-learning space or just wants to provide some more exclusive content to its Kindle users. Overall, an excellent but a small step towards a multibillion-dollar business opportunity.

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Source: Amazon: Another Step Towards A Multi-Billion Dollar Industry