We probably didn’t expect our week to start this way – Software developers, Microsoft Corp. will acquire business-oriented social networking service, LinkedIn Corp., for $196 per share in an all-cash transaction valued at $26.2 billion, the announcement was made on Monday in a statement released on Microsoft blog.
However, LinkedIn will retain its distinct brand, culture and independence as Jeff Weiner still remain as the CEO of the company reporting to the CEO of Microsoft, Satya Nadella, while the the two companies hope to close the deal this calendar year and is subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.
The company plans to integrate the career-oriented social network into many of its apps and services, including Office, Skype and Cortana. You’d get the details of the person you’re meeting for a business deal, for example, or get help from an expert when you’re working on an Office 365 project.
You need a “connected professional world” to get things done, he says, whether it’s getting help with a spreadsheet or fleshing out details in a customer relations tool like Microsoft’s Dynamics. And while Microsoft is purposefully keeping itself at arm’s length, Nadella sees the potential for revenue through subscriptions and (like it or not) targeted ads.
Currently LinkedIn has 433 million and these numbers much as they don’t much Facebook or Twitter are still considerable big. This latest acquisition indicates Microsoft’s intentions to reduce its dependence on Windows and putting more of an emphasis on cloud services.
This is as much about acknowledging a changing computing landscape, where Windows doesn’t necessarily dominate, as it is a bid to become a crucial service provider.