The software giant, Microsoft announced that it is planning to acquire LinkedIn for $26.2 billion. It is the biggest deal since Satya Nadella has taken over the CEO post two years ago.
Microsoft is one of the largest IT Company, known for inventing new technologies and investing in big or small enterprises, whereas LinkedIn is a professional network or HR Tool for connecting with people for the professional purpose and share ideas with them. Microsoft has a history of acquisitions and integrations; it is not new for them to invest in the major brands, as it has acquired companies like Nokia, Skype, Yammer, Mojang and now LinkedIn.
Microsoft has merged the biggest content company in the world; it is one of the most influential, highly read, specialized professional companies. Nadela hasn’t wasted his money as reportedly; LinkedIn has more than 433 million users in the world. It was founded in 2003 in California with just 4500 members in its initial months. Now every two second a new member connects with LinkedIn to enhance its professional network. It has earned revenue of $2.9 billion in the year of 2015, which is 35% more than the previous year.
In the announcement, Satya Nadela said: “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.” This clearly specifies that he wants to combine LinkedIn, its CRM business of Dynamics and Microsoft Office 365 together. We know that Microsoft also own Azure cloud service, possibility of fusing the four services together can offer an invincible package of services.
The Microsoft has more or less failed in the field of smartphones, but big enterprises are still giving it excellent opportunity to rule. LinkedIn could be the example; it will run LinkedIn as a separate entity and the current CEO Jeff Weiner will report to Satya Nadela, CEO of Microsoft.
LinkedIn is a very popular social media platform, or you can say premium level network used by a large number of professional so that it may be a great source of revenue for Microsoft.
Now $26.2 billion doesn’t sound like an expensive deal, as Microsoft has earned a social media presence with buying LinkedIn for it. It takes a real long time to build a brand like LinkedIn and create such a huge user base. LinkedIn is the Facebook of professional world with a large number of Resumes. So, it sounds to be a great deal for Microsoft.