Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash. Its an interesting acquisition considering the fact that, Microsoft has been focusing a lot on AI and User Research in the past few years. This acquisition helps them with more and more data to play with at the base level. Another point worth noting is that, LinkedIn had acquired SlideShare and Lynda sometime back. This could probably help Microsoft focus on taking SlideShare to Office365 and of course, Lynda’s huge course content to its learning portal. This acquisition would also mean, Microsoft will look at including the productivity and communication tools as a part of the professional network.
LinkedIn will retain its distinct brand, culture and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction. The transaction is expected to close this calendar year.
There has been a lot of buzz online on the transaction value being $26.2 billion. Whether is LinkedIn really worth that much? or is it again a classic case of companies being over-valued. This is also Much Much higher than what Facebook paid for WhatsApp. Even when Microsoft acquired Skype, there was this buzz. This article gave a different perspectives on the hype of the acquisition.
Its funny to see the announcement come today, while the entire world is looking at Apple for the WWDC. Maybe, Microsoft just wanted to take some attention in the day. Jokes apart, this is definitely a significant move for both the companies. Lets see what they come up with together.
“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.