Following the announcement in June that Microsoft had acquired LinkedIn, CEO Satya Nadella has told employees he hopes the deal will “accelerate [the site’s] growth and the value it brings to its members with Microsoft’s assets and scale.”
In an open letter published by telegraph.co.uk, Microsoft told employees that the deal, which has an estimated value of $26.2 billion, “can reinvent ways to make professionals more productive while at the same time reinventing selling, marketing and talent management business processes.”
Microsoft fought off three other bidders – one of which is thought to have been Salesforce – before ultimately winning the deal. Its offer of $196 per share couldn’t be beaten by the other parties. As part of the sale, Microsoft will also have access to the Lynda.com online learning platform which LinkedIn itself bought recently.
Sound platform for Microsoft to build on
Though LinkedIn was launched back in 2002, it has experienced 19 percent year-on-year growth, reaching 433 million members, plus it’s revamped mobile app has lead to 49 per cent growth of use on a mobile device – some great stats to Microsoft to build on.
Reaction to the news has been mixed. For some, it’s the happy marriage of two massive businesses – a match made in heaven as huffingtonpost.com calls it. It’s hoped that the alliance will address users’ common bugbears, such as the unfriendly connection management system and a reconfiguration of the Pulse publishing platform. Others are willing the deal to rekindle members’ interest in the LinkedIn Groups feature – and hoping it’ll encourage members to use the site more effectively, full stop. Proponents are anxious that the acquisition doesn’t affect LinkedIn’s strong Recruiter product.
Fans of LinkedIn need not panic; the brand will retain its identity and ‘independence’, according to Microsoft’s own news blog.
The acquisition, the report says, will lead to the improvement business processes. There’s also a suggestion that the newsfeed will link to Office 365, making suggestions based on current tasks.
Nadella added: “I can’t wait to see what our teams dream up when we can begin working together once the deal closes, which we expect will happen this calendar year.”