Microsoft said today it was buying the professional social network LinkedIn for $26.2 billion in cash, in its biggest-ever deal, combining the software giant’s fast-growing cloud services business with the world’s largest online network for professionals. But it also help Microsoft, which will be pooling its professional cloud resources with LinkedIn’s professional network to connect and empower more businesses and individuals.
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A $26.2bn (£18.4bn) takeover of LinkedIn by Microsoft will see the combined entity employ more than 2,000 people in Ireland.
LinkedIn CEO Jeff Weiner, who will remain in his position and report to Nadella, wrote in a blog post that the deal would enable the company to join the ranks of the nation’s tech titans. The joint press release makes it clear that LinkedIn will “retain its distinct brand, culture and independence” as part of the deal, which has the full support of Weiner and LinkedIn chairman and co-founder Reid Hoffman.
The transaction has been unanimously approved by both boards of directors and is expected to close before the end of the year.
This is indeed a good step forward for the company, and it is being anticipated that Microsoft will soon start pushing their premium business features with LinkedIn in the days to follow. LinkedIn now has 433 million members (up 19% from a year ago) across 200 countries and territories.
Microsoft’s facility for absorbing a large acquisition will again be tested as it was with the ill-fitting $7.1 billion Nokia purchase two years ago that culminated in a $7.4 million charge off last year and layoffs of more than 10,000 workers. It is still subject to approval by LinkedIn’s shareholders and other regulatory approvals and closing conditions. With this deal, Microsoft can use LinkedIn’s database of professional information and distribution network for its software packages.
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“Moody’s Investors Service placed the “Aaa” senior unsecured rating of Microsoft Corporation under review for downgrade following the announcement that the company has agreed to buy LinkedIn Corporation for Dollars 26.2 billion in cash”, it said.
