Microsoft Corporation (MSFT) and Educational Technology, or more commonly known edtech, may not be the most obvious connection. The company is well known for productivity software and more recently for cloud computing units. But Microsoft is quietly becoming a force to consider in education.
Although edtech isn’t on the company’s balance sheet, Microsoft is already one of the school’s top technology providers, thanks to its highly productive application suite. Recently, it has diverged in other directions, such as investing in start-ups that use artificial intelligence for education.
Last week, Microsoft made another move, acquiring Take Lessons, an online platform that connects students with individual tutors in a variety of subjects such as music, crafts, and languages. The acquisition price is not disclosed. Founded in 2006, San Diego-based Take Lessons has raised at least $ 20 million from investors. The number of users on that platform is unknown.
- Microsoft has acquired online education provider TakeLessons.com.
- The acquisition strengthens the company’s portfolio of hybrid products for work and school.
- Already used by 100 million students in public schools, Microsoft Teams is a leading provider of management solutions to educational institutions thanks to productivity software.
Microsoft and Educational Technology
The education technology market has shown great expectations at the beginning of the last decade. But it couldn’t respond to the hype, and after raising hundreds of millions of dollars, some well-known startups crashed.
However, the number of edtech is still quite large. According to a survey, the education technology market was worth $ 89.49 billion last year and is expected to grow by about 20% annually.
Part of the reason for its impressive pace of growth is the growing popularity of distance learning throughout the school. The company’s video conferencing software, Microsoft Teams, benefited from this trend last year and has become a popular learning tool in school districts.
The acquisition of TakeLessons enhances Microsoft’s reach to edtech. The specific plans for the acquisition have not been disclosed, but the synergies between the team used by 100 million students during the pandemic and the lesson provider Take Lessons cannot be ignored.
For example, Take Lessons can offer custom learning solutions to school districts and other customers. “This acquisition is meeting the growing demand for personalized hybrid opportunities and expanding our product offering to consumers on Take Lessons, our leading online learning platform,” senior executives emailed CNBC. Told.
TakeLessons can also follow a path similar to the one created by Lynda.com. The online learning platform was imported into Microsoft after the acquisition of LinkedIn in 2016. It’s now part of LinkedIn Learning, creating content for senior executives in your organization and offering it as part of a premium subscription to a professional networking site. ..
LinkedIn is an independent brand of the parent company and has a unique set of products and services that do not overlap with those offered by Microsoft. In the fourth quarter of 2021, it generated $ 3 billion in revenue, or about 6% of Microsoft’s total revenue.
TakeLessons said in a note on the acquisition website that the company will continue to operate as before for the foreseeable future, but its global reach is expanding. “We hope that this change will allow Take Lessons to build better products, attract higher quality teachers and choose from a wider range of subjects,” the company said.