Ripples were created in social media and news today as Microsoft announced that it would be acquiring LinkedIn for a whopping $26.2 billion which would break down to $196 per share, in cash.
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Microsoft chief executive Satya Nadella said he had been tracking LinkedIn for some time and the deal was about improving connectivity and productivity.
Jeff Weiner, CEO of the professional social networking company will keep the title and report to the tech giant’s CEO Nadella.
In a letter to Microsoft staff, CEO Satya Nadella said: “This deal brings together the world’s leading professional cloud with the world’s leading professional network”.
The company paid a premium of nearly 50 per cent of Friday’s closing share price, paying $196 for each share. Meanwhile, Microsoft lost around 3.3 percent. Meanwhile, in a letter to Microsoft employees that was published by Business Insider, Nardella expressed excitement at the possibilities of marrying LinkedIn’s vast network with Microsoft’s Office 365 and Dynamics.
The deal will require approval from regulators in the United States, the EU, Canada and Brazil, LinkedIn after which it will become part of Microsoft’s productivity and business processes unit, the companies said. Think about it: “How people find jobs, build skills, sell, market and get work done and ultimately find success requires a connected professional world”.
It is by far Microsoft’s largest acquisition – much larger than Skype, which the company bought for $8.5 billion in 2011.
Microsoft has always been in the software business, but the company knows it needs to diversify to stay competitive, in an age where Google can offer you numerous capabilities of Microsoft Office via Google Docs, without your ever paying a dime.
Gregory Sichenzia, a partner at securities law firm Sichenzia Ross Friedman Ference, said the companies will breathe new life into each other.
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For Microsoft, LinkedIn’s acquisition is the window of opportunity to position its products more firmly and to expand the markets all over the world through LinkedIn’s vast data and network. That is presumably after they and LinkedIn chairman Reid Hoffman had already provided the green screen pictures that were used to craft the lazy Photoshop at the top of this post.
