This latest announcement marks the largest cloud acquisition of the year, with LinkedIn shares spiking
Microsoft buy LinkedIn for $26bn
This latest announcement marks the largest cloud acquisition of the year, with LinkedIn shares spiking 47%. While cementing faith in the social media platform the news saw Microsoft’s shares plummet by 3%, suggesting scepticism in the marketplace.
“This deal brings together the world’s leading professional cloud with the world’s leading professional network,” said Satya Nadella, CEO of Microsoft in a letter to employees.
“I have been learning about LinkedIn for some time while also reflecting on how networks can truly differentiate cloud services.”
While tech giants Microsoft have been loosely involved in social media before, providing tools for online advertisers and media agencies, this is the first venture of this kind. According to many sources the purchase of $26bn is 50% overpriced, however, devoid of the headache of creating a new social media platform Microsoft could save themselves a considerable amount overall.
“We are in pursuit of a common mission centred on empowering people and organizations” continued Nadella.
“Along with the new growth in our Office 365 commercial and Dynamics businesses this deal is key to our bold ambition to reinvent productivity and business processes.
This purchase is allegedly about a lot more than simply earning money, planning to reinvent LinkedIn; using past experiences in the world of tech. With a mission to incorporate and take inspiration from existing Microsoft products the brand is suggesting to be working on some pretty ground-breaking changes.
“Think about it: How people find jobs, build skills, sell, market and get work done and ultimately find success requires a connected professional world. It requires a vibrant network that brings together a professional’s information in LinkedIn’s public network with the information in Office 365 and Dynamics. This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you’re trying to complete.”
Let us know what you think, will LinkedIn change much under Microsoft ownership? Leave us with your comments.