LinkedIn is making its first acquisition, a company that sifts through large amounts of data to try to determine relevant information, the business social networking site said on Wednesday,
LinkedIn said it will buy Pittsburgh-based mSpoke to help improve its ability to filter messages and news articles that its users share on its network. MSpoke also will improve LinkedIn's recommendation engine, which flags people, jobs and other insights about LinkedIn's members, LinkedIn Chief Executive Jeff Weiner said in an interview.
This is one of our top priorities. There is considerable R&D going into this, said Weiner.
Terms of the deal were not disclosed. Weiner said that LinkedIn has roughly $76 million that raised in 2008 in the bank, and that it funded the deal through operating cash flow.
Privately held LinkedIn, which makes money from advertising and premium services, does not disclose its financial results, but Weiner said that the company's revenue growth has accelerated and profit has risen this year.
MSpoke's two founders will join LinkedIn too, Weiner said.
LinkedIn has added roughly 10 million new members since April, with the social network now counting more than 75 million members worldwide.
(Reporting by Alexei Oreskovic. Editing by Robert MacMillan)