Perhaps the biggest news of 2016. Microsoft and LinkedIn announced a short while back that the two companies are in talks for LinkedIn’s acquisition by Microsoft. You read that correctly and this is big indeed.
This acquisition will mark Microsoft’s move into the enterprise social network arena. This will have Microsoft acquiring LinkedIn at an estimated $26.2 Billion, which will be an all cash transaction. The cost per share of LinkedIn comes to around $196. While the company will be acquired, the positive is that it will retain its independence. Jeff Weiner will remain the CEO of LinkedIn and will be reporting to the CEO of Microsoft, Satya Nadella.
LinkedIn has been busy, especially in the past 12 months, launching the new mobile app. This was a much needed move as the app has helped improve the engagement on the platform. That coupled with a few tweaks of the layout that help with insights, improved analytics and making the platform more engaging with “Pulse”.
So what does LinkedIn’s acquisition mean for Microsoft?
Let’s be honest, the tech giant has tried everything. The biggest failure was perhaps the acquisition of Nokia, let’s not bring it up here. The acquisition of LinkedIn fits the missing puzzle of Microsoft of providing added services to the enterprises. This also gives Microsoft the big step ahead of having a rich network of professionals, content and a reach that is currently over 400 Million plus users. A similar step was taken by Microsoft back in 2012 with its acquisition of Yammer. That acquisition was around $1.2 Billion.
We will add more as the story builds up, I am slightly pessimistic though. The doubts exist on Microsoft making a part of its “Enterprise Suite” and pricing it to the nose. You must have read our post on how PopSugar let go of the Office Suite for Google Docs for being a cheaper option.
Some Stats on LinkedIn
Here’s a recap on how the professional network has been performing in the recent past:
- 19 percent growth year over year
- 433 million worldwide members
- 105 million monthly unique visiting members
- Mobile usage jumped from 49 percent year on year to 60 percent
- 45 billion quarterly member page views, which is 34% plus year on year
- 7 million active job listings, a 101%+ year on year growth
Let’s see how this formulates in the coming months for both companies.
Via PR News