LinkedIn will be under Microsoft umbrella of M&A
Microsoft announced that they will be acquiring professional social media platform, LinkedIn for $26.2 billion in cash at $196 per share.
The announcement of this news surged LinkedIn’s shares by 48%, while Microsoft’s stock was down by 3 percent. Trading was halted for the pending announcement of this M&A. This deal has been approved by both companies’ Board of Directors, and is expected to close by the end of this calendar year. The acquisition is still subject to approval by LinkedIn shareholders, and regulatory approvals.
Nothing has changed says Jeff Weiner, CEO of LinkedIn, in his communication to LinkedIn team. Jeff would be reporting to Satya Nadella, and all the employees will be having the same job function and title.
“The one exception: For those members of the team whose jobs are entirely focused on maintaining LinkedIn’s status as a publicly traded company, we’ll be helping you find your next play. In terms of everything else, it should be business as usual. We have the same mission and vision; we have the same culture and values; and I’m still the CEO of LinkedIn”, Jeff said in his communication to LinkedIn employees.
— LinkedIn (@LinkedIn) June 13, 2016
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. 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” Nadella said in a statement.
LinkedIn was founded by Reid Hoffman, Allen Blue, Konstantin Guericke, Eric Ly and Jean-Luc Vaillant in 2002. Operations were started from the living room of co-founder Reid Hoffman. It is currently headquartered in Mountain view, California with 9,500+ employees and offices in 30 countries. It has 400+ million users with 45 billion member page views per quarter.
Microsoft could make use of 433 million user accounts raging from students to CEOs to target their Microsoft products. LinkedIn acquired Slideshare in 2012 and Lynda in 2015. Microsoft could get into e-learning sector with Lynda’s platform and push their Microsoft suit of products through Slideshare.
This deal will definitely transform the way LinkedIn is operating and will give a boost in sale of Microsoft products.
INDIAN CEO TAKE
Post Nokia acquisition and write off this is definitely a big move for Microsoft and Satya Nadella. Earlier this year LinkedIn itself was found struggling to keep up the revenues to match investors expectations. While it is a best professional network, monetizing other than recruitment solutions became quite difficult. For Microsoft, recruitment might not be the area of interest, It will be majorly looking at boosting its SAAS business with Office 365 and Enterprise solutions. It might build collaboration in office products to beat google slides, Sheets and Docs which are free to use. Earlier in 2015 Microsoft was rumored to be buying Salesforce, If that happens now that combination of Microsoft + Linkedin + Salesforce will be a billion dollar products.