Ringo | On 14, Jun 2016
Microsoft Corp. acquired LinkedIn, the largest social networking sites for professionals, for a whopping $26.2 billion.
“LinkedIn and Microsoft really share a mission of helping people work more efficiently,” said Microsoft CEO Satya Nadella in an interview with the press. “There is no better way to realize that mission that to connect the world’s professionals.”
The deal can be a great opportunity for both companies to share each other’s forte.
Users of LinkedIn can connect to Microsoft’s products such as Outlook, Powerpoint, Word, and many more so they won’t be using other products such as Google’s Gmail. The latter, on the other hand, can tap it’s users to the social networking site.
Reid Hoffman, the chairman of LinkedIn and the company’s controlling shareholder, said the deal has its full support.
LinkedIn went public in 2011 at $45 per share. In 2015, it blew to $270 per share but still quite low compared to the price paid by Microsoft.
The deal, which was approved unanimously by the boards of both companies, is expected to be completed this year. It will still has to be approved by regulators in United States, EU, Canada and Brazil.
Once the deal was completed, LinkedIn will become a part of Microsoft’s productivity and business processes unit.