Oct. 2, 2014, 12:58 PM
- Internships.com, declared by Chegg (CHGG +1.1%) to be "the world's largest student-focused internship marketplace," claims 2M+ registered students and relationships with 380 universities. Chegg is paying $10M in cash, and issuing $1M worth of shares.
- Chegg CEO Dan Rosensweig, whose company has been hungry to grow digital sales: "With this acquisition, Chegg is poised to disrupt the highly inefficient and fragmented $5 billion college recruiting market ... Adding Internships.com enables Chegg to fundamentally improve matching between students and employers." LinkedIn has been showing similar ambitions as of late.
- Internships.com will be further integrated with the Chegg Career Center (a partnership already exists). The purchase follows Chegg's June acquisition of tutoring marketplace InstaEDU. The company's digital revenue rose 54% Y/Y in Q2 to $18.7M, while its print textbook revenue grew only 5% to $45.8M.
Jul. 29, 2014, 6:16 PM
- InterActiveCorp's (NASDAQ:IACI) Tutor.com unit has bought leading test prep/college admission services firm The Princeton Review for an undisclosed sum.
- Going forward, Tutor.com will mostly offer its existing services (used to connect students with a network of online tutors) under The Princeton Review brand. Joint tutoring/test prep services are planned.
- Tutor.com, acquired in early 2013, is part of IAC's recently-formed Match Group, which also includes the company's online dating assets. Acquiring The Princeton Review could put Tutor.com on better footing to compete against Chegg (NYSE:CHGG), which recently bought rival tutoring site InstaEDU.
- IAC is only two weeks removed from buying online dating service HowAboutWe. The company's Q2 report arrives tomorrow morning.
Jun. 3, 2014, 11:43 AM
- Chegg (CHGG +3%) is buying InstaEDU, a site that connects students with online tutors handling 2.5K+ subjects, for $30M in cash.
- InstaEDU screens tutors using a qualification system, and takes a cut of tutoring fees. Rates start at $0.40/minute.
- The startup's services complement Chegg Study, which provides guided solutions for coursework in partnership with textbook publishers and qualified experts.
- They also strengthen Chegg's efforts to grow its digital sales (+66% Y/Y in Q1, 24% of revenue), and thus cut its dependence on a slower-growing print textbook rental business (+13% in Q1, 76% of revenue).
Nov. 9, 2013, 9:31 AM
- Intel (INTC) has acquired Kno, a creator and seller of digital textbooks that can be viewed through mobile, Web, and Windows apps. Terms are undisclosed; with Kno having raised $73M to date, odds are the price tag is in nine figures.
- Kno's platform allows publishers to convert standard digital textbooks into interactive titles sporting features such as flash cards, quizzes, and embedded instructional videos, as well as a dashboard that keeps track of reading activity. Intel points out Kno, which competes with Amazon, Apple, and Google's e-textbook offerings, offers 225K titles via 75 publishers.
- Though acquiring a digital textbook seller is off the beaten path for Intel, the chip giant does sell home-grown tablets and notebooks meant for the education market, as well as an education-focused software suite.
- Moreover, Intel hasn't been shy about making software/services acquisitions it thinks can help drive demand for its CPUs. And Kno might indirectly help the company in a market (tablet processors) where it needs to play catch-up.
- Kno is yet another e-textbook rival for online textbook rental leader Chegg (CHGG), which is set to go public in the upcoming week at a relatively modest valuation.