Professional social networking site LinkedIn (NYSE:LNKD) has acquired Pulse, the popular mobile newsreader app, in a $90 million deal. Only 10% of that value is being paid in cash, with the remaining 90% being stock. Pulse was founded in 2010 by two Stanford University students, and quickly grew to over 30 million users.
Roughly 40% of Pulse's user base is outside of the U.S., which will boost LinkedIn's international presence. LinkedIn has been focusing on building its content offerings, and Pulse will help the networker in that department.
Rumors initially surfaced last month that LinkedIn was contemplating an acquisition of Pulse. LinkedIn expects the deal to close during the second quarter.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends LinkedIn. The Motley Fool owns shares of LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.