Microsoft on Monday announced it is taking over LinkedIn business social service for a fee of $26.2 billion—but the transaction is expected to close this calendar year. The deal is expected to be finalized without any hitch—though, LinkedIn would be expected to $725 million as breakup fee if it backs out.
Though, details of what Microsoft plans to do with the acquisition was not made public in Monday’s announcement, the company’s CEO Satya Nadella has assured that LinkedIn will retain its “distinct brand, culture and independence.”
The Wall Street Journal reports that LinkedIn’s Chief Executive Jeff Weiner, is also expected to remain at the helm of affairs; but reporting to Nadella. Today’s acquisition is Microsoft’s biggest deal, and represents a significant landmark after weeks of issues bothering on data breaches that affected LinkedIn.
LinkedIn could be worth every dime being paid by Microsoft, considering the fact that it is the largest network for professional groups globally. LinkedIn’s primary goal is to connect professionals together—making them more productive and enabling them to maximize their potentials. With more than 400 million members actively involved on LinkedIn, it is difficult to look beyond why this acquisition won’t be a success for Microsoft. Lately, the software giant has been pushing and trying to gain inroads; and LinkedIn offers a new opportunity.
“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,” LinkedIn’s CEO Jeff Weiner stated in a press statement on Monday. “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.”
An acquisition that comes with some benefits too
Both Microsoft and LinkedIn have a lot to gain in this deal if it eventually gets off the mark without any last minute hitch. Moreover, members of the social network and users of Microsoft’s products—especially Office 360 and Dynamics have a lot to benefit from this.
“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.”
To further underscore how important Monday’s acquisition is to Microsoft, the company said obtaining approval of the board was a smooth sail. Details of integration are expected to emerge in the coming weeks and months; especially as the completion of the deal approaches.
Both Microsoft and LinkedIn have sent out internal emails to employees to keep them abreast of happenings as regard the deal. The email answered a couple of questions that employees might want to ask regarding the acquisition as well as provided further details.
Microsoft’s acquisition of Nokia didn’t go as expected after the company paid $9.4 billion to acquire the company’s phone business a couple of years ago.
Got something on your mind to say or add to this story? Share it in the comments section.