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.

Microsoft Acquires LinkedIn

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.”

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.

  • Share to show love:
    Loading...

    Francis Nwokike

    Francis is a Passionate Social Entrepreneur. Love discussing new trends in Business and Marketing. A Startup consultant. A good listener. Love to help that your business grow.

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.