The technology world has been seeing some interesting developments over the last few months and to add to that, Microsoft has just announced its acquisition of LinkedIn for $26.2 Billion in cash. This seems like one of the biggest deals of the recent times.
LinkedIn’s shares closed at $131.08 per share on Friday and Monday morning, Microsoft announced that is it paying $196 per share of LinkedIn, making the total amount to $26.2 Billion. $196 per share is a great hike to the price and fortunes of LinkedIn’s shares.
With the latest deal, LinkedIn CEO, Jeff Weiner will directly report to Satya Nadela.
The deal hold a great significance for both the teams. Microsoft will get a great enterprise product with over 433 million users and at the same time, revive it’s sinking ship of decreasing users of products like windows phone. With the addition of LinkedIn on the product portfolio, Microsoft will now have far better reach and professional content over the web, giving it an edge as well as competition over the other bigger players in the market. Also, the deal will allow Microsoft to use LinkedIn as a great channel to advertise its products like Office 365 etc.
Speaking on the development, Satya Nadella said that the team at LinkedIn has worked wonders to create an amazing tool for the professionals. Coming together, we can accelerate the growth of Office 365 as well as the social network and empower every single professional and the organization on the planet.
In a statement, Jeff Weiner stated that over the last 13 years, the team has built a great product to connect the professionals across the globe and with the help of Microsoft and its product portfolio, it will be an interesting journey for the team to experience the next adventure along with one of the greatest tech companies of all time.
This latest acquisition, also puts a break, to some extent on the fact that Microsoft has never been a successful brand when it comes about social networking. However, it had invested in Facebook, before the social network went public and now with this acquisition, Microsoft has joined that league of the successful social networking businesses.
LinkedIn has registered its presence in over 200 countries with over 105 million active monthly users. The company claims having over 433 million registered users on the platform and 15 billion pageviews every month. With over 60% of mobile traffic, the company claims that majority of its earnings come from job listings and premium subscription of users. More details about the deal will be live at 8:45AM pacific time, when both the companies hold a press conference.