Microsoft Corporation is planning to acquire LinkedIn for $26.2 billion. The transaction is known to be an all cash transaction, and it means that the deal would put the LinkedIn shares at $196 each.
Microsoft plans to keep the brand and staff at LinkedIn, and they will also keep their independence. The CEO will also stay but would have to start reporting to the Microsoft CEO, Satya Nadella.
Nadella said that the LinkedIn business looked lucrative because the company had managed to grow a fantastic business and it was a good opportunity for professionals to connect. He also said that LinkedIn had more potential especially if they were going to be joined together with the Microsoft Office 365 and Dynamics.
Microsoft plans to close up the deal with LinkedIn later this year, and the deal has already been unanimously approved by the board of directors for both companies.
The acquisition is marked as the first big acquisition by Satya Nadella ever since he took the job more than two years ago. The deal is in line with what Microsoft is attempting to do by making themselves the leader in professional cloud and also together with the making the world professional leading network.
https://youtu.be/-89PWn0QaaY
The acquisition is clearly a major buy both in the times of the cash involved and the stature of LinkedIn. The network site currently has 433 million members on its network, who can network with other professionals, find jobs and also connect to other colleagues and former associates. It also has a premium service for its exclusive members.
Nadella said, “The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. Together we can accelerate the growth ofLinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.” You can find the full memo here.
The whole purpose of the acquisition is not known yet, and Microsoft has not revealed their plans yet. Most analysts, however, think that the move will probably be seen as a way to boost the company’s online social networking presence.
The company has struggled in their attempts to break into the enterprise social networks. Nearly four years ago, the company invested in Yammer for $1.2 billion but the business didn’t boom as much as they expected. Hopefully, this time it will work out for them.
