Microsoft (MSFT) is making a big EdTech play. Last week, the software giant acquired TakeLessons, a platform that connects curious users with individual tutors in areas like music, language, academics, and professional training — both online and in person.
TakeLessons is based out of San Diego and has raised over $20m from venture capitalists like LightBank, Uncork Capital, and Crosslink Capital since its founding in 2006. TakeLessons is one of many EdTech players like Europe’s GoStudent trying to disrupt the traditional college and university-dominated education industry.
The Covid-19 pandemic, along with skyrocketing tuition rates, are the two main catalysts driving the EdTech space right now. While Microsoft hasn’t disclosed how much it paid for TakeLessons, it’s clear they see a big opportunity.
why it matters
Just like Apple (AAPL), one of Microsoft's secrets to success is incorporating a wide variety of tools, apps, and features into its ecosystem to make it as "sticky" as possible. The TakeLessons platform could be easily integrated with existing Microsoft platforms like Teams and Outlook.