Microsoft to buy LinkedIn for a whopping $26bn
- June 14, 2016
- Posted by: admin
- Category: Digital Marketing News
Microsoft is buying the professional social platform LinkedIn for massive $26.2bn (£18bn) in cash an amount more than what Facebook paid for WhatsApp.
The software giant will pay $196 a share that is a premium of almost 50% to Friday’s closing share price.
According to the report, the deal will help Microsoft increase sales of its business and email software.
With over 430 million users worldwide, LinkedIn allows people to network with fellow professionals, upload their CVs, share news and apply for jobs.
As per the deal, LinkedIn would retain its “distinct brand, culture and independence”, with Jeff Weiner remaining as chief executive, reporting to Microsoft CEO Satya Nadella.
The deal is a merger of two brands that perform incredibly well in the corporate sector. Linkedin not just opens new opportunities for Microsoft to expand beyond software and into enterprise services but also help the software giant in competing with the likes of Salesforce in the CRM market.
Microsoft will also be making use of LinkedIn’s social graph (connections between users and companies) as an integrated selling tool alongside its existing CRM products.
For LinkedIn, the deal provides it with powerful software to service and target its users.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said in a statement. “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.”