Microsoft closes deal to buy LinkedIn
The $26.2bn purchase is the biggest in Microsoft’s history, but perhaps small change for access to LinkedIn’s vast database.
Microsoft announced on last week that it will be purchasing the the professional networking site LinkedIn. Agreeing on a price of $26.2bn (£18.4bn), it makes it the biggest deal in Microsoft’s 41-year history. After announcing the deal, shares in LinkedIn went up by 50 points. Microsoft is paying $196 per share in the deal which has already been approved by the two companies’ boards.
LinkedIn are in good company joining Microsoft’s previous acquisitions worth over one billion dollars: Skype (2011), aQuantive (2007), Fast Search & Transfer (2008), Navision (2002), Visio Corporation (2000),Yammer (2012), Nokia (2013) and Mojang (2014)
The announcement adds that LinkedIn, “will retain its distinct brand, culture and independence” with the current CEO Jeff Weiner retaining his position. Microsoft’s offer boosts the value of each user up to $247, higher than social media rivals Facebook and Twitter.
Microsoft’s CEO, Satya Nadella , said in a press release from the company that, “The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella 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.”
The deal is a hugely significant one for both Nadella and Microsoft as it aims to further strengthen its Cloud services. The deal will see Microsoft’s Office 365 and Dynamics connected to LinkedIn’s professional network of 433 million plus users. Through purchasing LinkedIn, Nadella ambitious that the partnership will, “ invent new ways to help professionals achieve more as we reinvent selling, marketing and talent management business processes”. The deal is is expected to be finalised by the end of this year.
