Microsoft to acquire LinkedIn for $26.2 Billion
Microsoft has shocked us by announcing its latest and one of the biggest acquisition in Internet space. Microsoft is acquiring LinkedIn, the social network for professionals for $26 billion or $196 per share in cash. The deal has already been approved by both boards.
The $196 per share is a big hike on the current price from Friday which was $131.08.
LinkedIn will keep its branding, product, culture, and independence. Current CEO Jeff Weiner will remain CEO of LinkedIn, and will report to Satya Nadella. Now LinkedIn will become the part of Microsoft’s productivity and business processes segment.
Microsoft has a big business focusing large enterprises. With LinkedIn, it can push its enterprise focused strategy in the better way. LinkedIn will give it better reach in terms of professional content and social network. LinkedIn can also become a big channel for Microsoft to sell its products and get more subscribers for its services.
“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.”
“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. “For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”
This will be interesting to see if this acquisition helps Microsoft. What do you think about this deal? Share your views with us in comments.