LinkedIn, the social network for the business oriented, is soon to be a part of Microsoft.
Microsoft has announced that it is acquiring the LinkedIn network into their fold. LinkedIn reportedly has 433 million users. Microsoft has proposed to pay $26.2 billion (Rs.17,62,47,26,90,000!) which will be $196 per share in cash. Both party boards have sanctioned the transaction for this undertaking. There will be some legal regulations which could take some time.
According to the merger agreement between the two companies, the professional network will continue to thrive under the same name, under the same CEO, Jeff Weiner. However LinkedIn CEO Jeff Weiner will report every detail to Microsoft CEO Satya Nacelle. Also the company will maintain its unique culture, independence and brand under this merger. It will become a part of Microsoft’s productivity and business process segment.
This merger will be Microsoft CEO Satya Nadella’s first huge acquisition since he rose to the top of the ladder, two years ago.
“The team LinkedIn has created a great environment for the businessman around the world to come together and interact and share ideas. This is an ideal ground for great improvement in business. With this platform Microsoft can work it along with Microsoft Office 365 and increase it growth. This merger can empower every person on the planet to improve their organisation,” says Satya Nadella, speaking about this new venture.
In the eyes of Microsoft, this acquisition is the combination of the world’s leading professional cloud with the world’s leading professional network. The professional network allows it’s user to connect with new organisations and old colleagues. It also provides users with a premium option which most regular users opt for.
Microsoft has not yet revealed the reason or how it will use its new acquisition under its roof. The tie up is quite an odd combination. LinkedIn is only famous among job seekers and employee hunters. Also, a good portion of all those using LinkedIn are already users of Microsoft. Nobody is still clear why Microsoft is paying $26.2 billion for a company that does not make a profit.
Microsoft’s record of past acquisitions is quite poor. The company had notably bought Nokia Mobiles and Skype, both of which have an uncertain future as they are lagging behind.
What do you think of Satya’s move? Is it a head scratcher for you too? Or do you see the real deal behind it? Explain to us in the comments below.