Microsoft to acquire LinkedIn for $26.2 Billion
United States: Microsoft, a U.S. technology giant made
a major announcement that it is acquiring LinkedIn Corp. for $196 per share;
all cash transaction valued at $26.2 billion and it is expected to close the
deal by the end of the year 2016.
LinkedIn
is the world’s largest professional network with more than 433 million members in
200 countries and more than 60 percent of the traffic on mobile.
In
this deal, LinkedIn will still be keeping its brand image, culture, and
independence. However, will become the part of the Microsoft business
segment. In addition, LinkedIn CEO Jeff Weiner will remain CEO of LinkedIn and
will be reporting to Satya Nadella, as well as the employees of LinkedIn, will
have the same titles and managers.
Further,
after the announcement of the big deal the share of the LinkedIn surged 47
percent while Microsoft's stock was down 3.2 percent.
LinkedIn
is the world’s largest professional network by having more than 400 million
members along with various innovations it has increased its membership,
engagement, and financial results. With this acquisition, Microsoft will accelerate
the growth of LinkedIn, as well as Microsoft Office 365.
A
global consulting and market research firm, TechSci Research analyses that through
this acquisition Microsoft will able to strengthen its foothold in enterprise
social networking and with the help of LinkedIn sales and business development
human resources their products will sell under the business unit called “Selling
to ‘Social Selling’” which is expected to enhance the company overall revenue.