Microsoft made a huge announcement that they plan to acquire LinkedIn for $26.2 billion. The deal to acquire LinkedIn, which is the best work-related social networking giant, is an all-cash transaction that would value LinkedIn for $196 per share. Microsoft also verified that LinkedIn will still retain its own independence and brand the present CEO, Jeff Weiner, will also remain in charge and make direct reports to Satya Nadella, the CEO of Microsoft. This deal was a unanimous approval of both companies and the agreement is believed to close by the end of the year. The acquisition, however, it still subject by LinkedIn regulators and shareholders.
As we all know, LinkedIn is the ultimate social media platform that connects the world’s professionals and by sealing the deal, Microsoft aims to accelerate the growth of LinkedIn in addition to Microsoft Office 365 and Dynamics. The key motive behind this acquisition is to empower every individual and organization. LinkedIn is the ultimate business social platform with over 433 million people using the network to find jobs or reconnect will past colleagues. Many LinkedIn users also pay for premium services to access the website.
This deal also comes as a very big acquirement for Microsoft in terms of value and cash and of course, what a huge social media platform such as LinkedIn can potentially bring to the company. With the combination of the ‘world’s biggest professional cloud’ and the ‘world’s leading professional network’, we can expect to see many new advancements. While Microsoft has not stated exactly what it will use the LinkedIn acquisition for, we can imagine that this will be utilized as a great way to augment the company’s social networking presence.
Previously, Microsoft invested in Facebook in the early stages but the company has struggled to make a statement into enterprise social networks. Microsoft also spent $1.2 billion on Yammer about four years before but the success wasn’t as good as Microsoft hoped. Microsoft’s deal with LinkedIn however, is expected to be of huge benefit for both parties. For Microsoft, this acquisition will provide them with the perfect social fabric that is incredibly necessary in today’s network economy and for LinkedIn, the deal will give them to ideal opportunity to move the business more rapidly.