Microsoft Acquires LinkedIn for $26.2 billion – What This Means to The Tech Industry
Microsoft Acquires LinkedIn
LinkedIn has been acquired by Microsoft for $26.2 billion. This merger is considered one of the biggest tech mergers in recent times and giving Microsoft a firm foothold in the online professional world.
This move is Microsoft’s largest takeovers after it bought Skype $8.5 billion in 2011 and Yammer for $1.2 billion in 2012 and Nokia for $7.6 billion in 2013.
LinkedIn is the largest professional social network with 105 million active monthly users and more than 433 million accounts. It was founded in December 14, 2002 by Reid Hoffman and Launched on May 5, 2003.
Microsoft announced the deal in a blog post on Monday 13th June, 2016.
In an email to staff, Microsoft CEO Satya Nadella touted the pairing as a way to improve both companies by integrating LinkedIn’s content and network with Microsoft’s cloud computing and productivity tools.
Nadella further stated “This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you’re trying to complete. As these experiences get more intelligent and delightful, the LinkedIn and Office 365 engagement will grow.”
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said in the blog post. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”
Microsoft and LinkedIn released a video promoting the move.
LinkedIn had been struggling as a standalone company. It shares declined a whopping 43% in one day in February after it issued disappointing projections for the year.
The deal values LinkedIn at $196 per share, meaning Microsoft is paying a 50% premium on the company’s Friday share price of about $131.
Jeff Weiner, LinkedIn’s CEO, said that the combination will help Microsoft on its mission to become the premier business-to-business and workplace company.
“Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works,” Weiner said.
According to the press release, Jeff Weiner will remain in charge of the company.
Following the takeover, LinkedIn Shares has been bullish while the market seems less excited for Microsoft which was down by 3.6% on Monday morning.
Meanwhile, in the social media, there are mixed reaction over the takeover. While some are of the view that Microsoft will help build LinkedIn into a better platform, others think it will kill LinkedIn.
Below are comments from 3 Facebookers
- Julian Capperilli wrote “That’s not a good thing, in my opinion. I guess we’ll see.”
Benedict Asamoah answering a critic wrote “Why is it not good, Microsoft is a big corporation with the resources and insights to push LinkedIn and also make a lot from it. I love LinkedIn but I think a few changes in how the platform works will be great, and I bet Microsoft is going to bring that change.”
Rajit Khadgi wrote “Microsoft will kill linkedin.”