Business Social Media Technology

6 Interesting Facts of Microsoft’s New LinkedIn Acquisition Deal

Microsoft Linkedin

June 13, 2016 marked the acquisition deal of LinkedIn Corporation by Microsoft Corp. As we all know now that LinkedIn the professionals’ social network has been acquired at a whopping US$26.2 billion cash deal by Microsoft making this as one of the biggest acquisition deal to surface the Silicon Valley in 2016.

For most people at LinkedIn, it wouldn’t have been business as usual since the news of LinkedIn acquisition came into existence. Things certainly changed for the rest of the world too, as it began its endless analysis of the question after all why did Microsoft acquire LinkedIn and what the future holds for the two companies? We bring you the lesser known facts of LinkedIn acquisition to uncover the secrets so that you are better off understanding the ever changing billion dollar tech companies ruling the world today.

Shared Vision

WhatsAppLet’s look back on the messaging app Whatsapp acquisition by social media giant Facebook which primarily came into being after meetings between the two CEOs and a mutual understanding combined with appreciations for Whatsapp platform and their shared vision for an improved future.

Most people can’t see these acquisitions coming into existence except only the handful of top executives knowing about the under currents of their company. This likewise happened at LinkedIn and Microsoft between Jeff Weiner LinkedIn CEO and Satya Nadella Microsoft CEO coming to a vision for LinkedIn to help Microsoft become the platform for managing workers’ personal details from around the web and help it to better predict useful information for its users in the supposed “Newsfeed”. The interconnectedness of their shared vision finally evolved into this acquisition.

Useful On Its Own Too

Satya Nadella | Source: wikimedia.org

Satya Nadella | Source: wikimedia.org

It seems that Satya Nadella was looking at this acquisition beyond enterprise software space and considers LinkedIn to be a useful platform on its own. If it wasn’t that, Microsoft wouldn’t have paid US$196.00 per share compared to LinkedIn’s closing price of US$131.08 which is at a premium of 64%. Microsoft certainly sees value proposition in LinkedIn’s core professional platform.

Effect of the Social Network

LinkedIn currently has over 433 million users, two new members join LinkedIn every second and its 2015 revenue was at $ 2.9 billion that was up 35% from last years. LinkedIn knows enough about the world’s work force and it is a good content / data generating website that Microsoft can utilize to strengthen its hold on connected enterprise software offerings such as Office 365, Skype, Bing, create sponsored content for marketers to reach Microsoft users and do much more.

Maturing Time

LinkedIn is the first acquisition by Microsoft since Satya Nadella joined office as the new CEO in 2014 and hopefully LinkedIn will proof beneficial for Microsoft in the long run. There is no other way but to give it time and let the future reveal itself!

Future in Focus

The forward thinking tech CEOs of today are visionaries in the true sense and they are always trying to see how they can increase user engagement and in turn increase returns. If we look at all major social media websites of today Instagram, Twitter, Pinterest, Tumblr, LinkedIn, Facebook and Snapchat, we see one constant which is “Change” & “Innovation”.

It is worth to mention one of the quotes of Larry Page CEO of Google here, “Lot of companies don’t succeed over time. What do they fundamentally do wrong? They usually miss the future”. Let’s hope that this LinkedIn acquisition by Microsoft will add more power to the connected fabric of Microsoft’s overall products and services.

One Thing Leading to Another

Perhaps the simplest explanation for the LinkedIn acquisition is this that there was one big enterprise that was on the look out to buy a decent company and another looking for a good buyer. Both LinkedIn and Microsoft helped each other in their pursuits!

Final Words

The LinkedIn acquisition certainly has been a big one and we are yet to see how Microsoft will integrate the data that is created by LinkedIn’s 400 million users into its core cloud services. Absolutely Microsoft is more interested in LinkedIn’s user base of 400 over million users and how it can reach them and how it can integrate all the information generated by LinkedIn users into its software’s fabric giving users the much needed Microsoft’s connectedness of useful things.

Linkedin

We also look forward to how Microsoft team will improve LinkedIn to a more useful, user friendly and integrated professional network that will add value to the Microsoft ecosystem.

eQTM admin

Quality | Timely | Marketing

Check Also

Why Your Business Needs Its Essential Company Logo?

Alright let’s begin with doing a Google search for you and see what we get for the phrase ...

Like us on Facebook