Microsoft (NASDAQ: MSFT) has announced to acquire a business-oriented social networking company LinkedIn in all cash buyout of $26.2 billion.
Just a few hours before the Cupertino-based Apple could probably make the biggest headline of this year during its Worldwide Developers Conference, the entire Technology industry actually got its biggest headline of the year – but not from Apple. The software giant Microsoft (NASDAQ: MSFT) has announced to acquire LinkedIn (NYSE: LNKD) in an all-cash buyout valued $26.2 billion, sending the whole Tech industry in a shock.
This buyout by Microsoft makes LinkedIn valued at $196 per share, indicating a premium of 49.5 percent to LinkedIn’s Friday closing price. Both the companies got their respective boards approved the deal to take things further. However, LinkedIn CEO Jeff Weiner will face no changes in terms of his job description. Just for one change, he will now report to none other than the Microsoft CEO Satya Nadella.
“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,” Satya Nadella had to say about this entire acquisition.
Microsoft hints LinkedIn’s potentials in the field of recruitment, advertisement and sales programs can team up with its comprehensive business and consumer connections. Interestingly enough, Microsoft Outlook.com itself leads over 400 million active users on its platform, and Microsoft Office has seen 340 million downloads on both Android and iOS devices collectively.
Nadella further assured that LinkedIn will always keep up with its brand, culture, and independence as it does now at Microsoft. However, this acquisition clearly indicates LinkedIn’s struggles with slowing growth. At this point, it’s kind of uncertain how LinkedIn is going to comply further with Microsoft’s strategy.
Microsoft says LinkedIn will become part of its productivity and business processes unit. It’s going to be possible once. However, the deal requires approval from regulators in the US, the EU, Canada and Brazil for Microsoft’s plans to be the reality.
LinkedIn currently has over 433 million users making use of its network to find jobs and connect with co-workers as well as industry experts. Many of the business and industry professionals also use LinkedIn premium to get rid of many restrictions that are otherwise not possible to eliminate.