Microsoft has announced on Monday morning that they will be acquiring LinkedIn for $196/share, about $26.2 billion cash deal.
It is by far the largest acquisition by Microsoft in the history; uniting two different companies walking on 2 different paths – one that develops software programs while the other one is a social networking site that has more than 400 million members worldwide.
Based on what Microsoft has posted on their blog site, they will not implement changes on how the social networking site works. LinkedIn will maintain its “distinct brand, culture, and independence.” Additionally, LinkedIn CEO Jeff Weiner will keep his position, however, he has to report to Microsoft’s CEO Satya Nadella. Weiner, together with his co-founder Reid Hoffman, embraces the acquisition.
The meeting between the two giants began in February according to Nadella during an interview conducted by CNBC.
After the acquisition, LinkedIn’s share value rose almost 50%, according to reports. The previous stock price was $45 per share.
If there’s a common denominator between LinkedIn and Microsoft, that is most Executives use these two platforms. LinkedIn is used to find prospective employees while businesses use licensed operating system and other software program Microsoft offers to make the integration of the deliverables synchronized and well-manageable. With such similarity, just imagine how Linked In’s performance can be boosted once Microsoft’s software programs and online tools are coordinated to the platform. Interviews can be done through Skype for Business; analysis of data can be managed through Dynamics, how Cortana will remind you of your upcoming meeting and how it knows everything about your business because it has been “linked” to your LinkedIn account, and much more.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “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.”
A lot of professionals were skeptic about the new “partnership.” They have mentioned how Nokia and Yammer failed in the past. Everyone is hoping that the new acquisition will not flop in the long run.
Nadella’s letter to his employees is full of positivity, claiming that it will be beneficial to the tech giant. He said, ”So far, what I’ve learned about the LinkedIn team is how much our cultures share many of the same attributes. We both care deeply about individual and collective growth, and find deep meaning in the work we do to make a difference in our world. Together we’ll do just that.”