LinkedIn, a social network for professional activities, saw its shares jump by 47%, following Microsoft’s announcement of a $26.2 billion acquisition deal on Monday.
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It would also have nine per cent growth to more than 105 million unique visiting members per month, 49 per cent growth to 60 per cent mobile usage and 34 per cent growth to more than 45 billion quarterly member-page views.
LinkedIn CEO Jeff Weiner imagines his company’s transition more as a partnership, in which the company will remain a “fully independent entity within Microsoft, a model used with great success by companies like YouTube, Instagram, and WhatsApp”, he said in an email posted to LinkedIn.
The boards of both Microsoft and LinkedIn quickly approved the deal and so it will be up to the latter’s shareholders to give the final approval, as well as passing the regulators as well. “Together we can accelerate the growth of LinkedIn.as we seek to empower every person and organization on the planet”. In a statement to employees he said, “Little is expected to change”.
The deal is the largest under the tenure of Microsoft CEO Satya Nadella, who has been reshaping Microsoft since taking over in 2014 to appeal more to business customers with cloud-based services and productivity tools.
An analyst said the deal would offer Microsoft a ready made market for its products.
Microsoft has a mixed track record with acquisitions, having written off more than $10 billion it poured into companies such as cellphone maker Nokia and an online ad firm called aQuantive.
Under Microsoft, LinkedIn will continue to retain its “distinct brand, culture and independence”. Both companies have had a challenging 2016 but this new partnership could spell the change they need to close the year out on a high note. The LinkedIn transaction is Microsoft’s biggest under Nadella’s watch, and while the companies make a strong case for uniting under the Microsoft banner, the software giant’s checkered past with previous acquisitions raises some concerns.
The BBC said the merger “is meant as a powerful signal of where Satya Nadella is now taking Microsoft”.
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Microsoft is aiming to become the tech company for the world’s professionals, helping them find jobs, learn new skills and do their work, say analysts.
