Yesterday Chegg announced the acquisition of Internships.com for $11 million in cash and stock, an acquisition I had predicted would happen when I came up with three potential acquisition targets in May, shortly before Chegg gobbled up live tutoring platform InstaEDU. OK, I admit that I had InternMatch on my list but I will book this under another Kirstradamus prediction that occurred, anyway.
In the press release Chegg’s CEO Dan Rosensweig estimates the college recruiting market at $5 billion annually with internships playing a key role in the career of successful students when it comes to getting jobs.
The internships will be folded into the Chegg Career Center that launched earlier this year with the aim to become the one-stop-shop for the entire career planning, from finding the right college to getting the dream job or even swapping careers at a later stage. Of course, Chegg is not the only one who targets that vertical. LinkedIn just announced new features that target students on the search for the right major, college and career based on user data.
But back to my list of upcoming Chegg acquisitions. With internships covered the two remaining verticals I see are alternatives to classic certifications and student loans. Both make a lot of sense for Chegg to get into, and I would think that student loans are next on the list as this is a more pressing problem that is getting lots of attention as of late and fits Chegg’s premise to save students and parents money while making the entire higher education journey more efficient.