Yes, the big news! Microsoft announced that it is going to buy LinkedIn having around 433 million users for $26.2 billion. But there’s also this little fact hidden. Microsoft has a solid plan ahead after buying LinkedIn and if somehow the deal doesn’t go through, LinkedIn will have to pay Microsoft an amount of $725 million as a termination fee.
The name LinkedIn is going to remain and will function exactly as it is now, but it now will be Microsoft product and will be a part of Microsoft’s productivity and business processes segment. The CEO of LinkedIn Jeff Weiner will report to Satya Nadella, the CEO of Microsoft.
What is Microsoft planning to do?
It’s like an addition of a missing piece of the company in the world of information and technology plus this acquisition will also help them to compete against a competitor ‘Salesforce’ which Microsoft tried to buy too earlier.
For now, Microsoft is focused on software and also hardware for its failing phone business, but this move will give Microsoft a wide spectrum in the field of enterprise social networking that actually started when it acquired ‘Yammer’ for $1.2 billion in the year 2012.
LinkedIn has also acquired some Lynda before this move which was more of a sales platform and assisting platform too. Microsoft plans to assist people through Lynda and thus selling its software product through Lynda too
“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.” Nadella said in a statement.
“Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn‘s network, now gives us a chance to also change the way the world works. For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.” said Jeff Weiner in his statement.
The chairman and Co-Founder of LinkedIn said “Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business. I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”