• Wall Street Journal, Friday, August 19, 2011 4:21 PM

To broaden its offerings, Chegg just acquired Web tutoring service Student of Fortune for an undisclosed sum. Digits thinks the online textbook rental and education service is trying "to become a one-stop-shop for college students."

During its last financing round late last year, Chegg raised $75 million from Ace Limited at a valuation reportedly close to $1 billion. Digits' source also said Chegg racked up about $100 million in revenues last year.

"Chegg is beginning to connect people through the student graph," said Chegg CEO Dan Rosensweig. "Our bigger vision is to help students to learn and save time and money."

Meanwhile (again citing an unnamed source) Digits says Student of Fortune is profitable, and boasts high margins -- not hard to believe, considering the startup has just five full-time employees.

More broadly, Chegg's "expansion reflects the company's belief that renting physical textbooks is not a growth business over the long term," according to Digits. "Now, Chegg must prove that these new premium services will catch on with cash-strapped students."

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