Ann Gabriel | ExecutiveChronicles
Microsoft recently announced that it is in the process of acquiring LinkedIn, a social network platform for professionals for $26 billion or $196 per share. The deal is already done and LinkedIn’s CEO Jeff Weiner will report to Satya Nadella.
Jeff Weiner stated that the acquisition will now pave the way how the world works. The initial agreements stated that LinkedIn will keep its branding, and it will become a part of Microsoft’s productivity and business processes segment.
Considered as a win-win situation for both Microsoft and LinkedIn. The acquisition now gives LinkedIn bigger reach and potential developments on Microsoft’s large software ecosystem.
Microsoft was obviously interested in LinkedIn’s massive social network of 433 million business members across 200 countries as a mouthwatering prospect. This member (and related user data) land grab would also help align Microsoft products with corporate objectives and responsibilities.
Nadella says that Microsoft’s needs have significantly evolved, and the age of the old PC/Windows/Office model is ending. A company adding the biggest business community platform to its portfolio that is sold to large business groups would be a wise strategic move.
LinkedIn’s problems with user, revenue growth, and a dropping share price have just been void by the acquisition and more probably will secure a new stronger future to close the gap on it’s competitions.
There appears to be a lot of opportunities for both Microsoft and LinkedIn. Given the situation, many companies are now thinking if the merger now becomes a catalyst for other companies to do the same.
Twitter now has 310 million visitors a month, but its growth has been noticably decreasing. This decline in growth can push Twitter to a tough spot.
As mentioned, companies who are looking for better ways might also do the same. Twitter could go for desperate measures that would unleash its potential and Google could be a potential buyer considering the struggles that they are experiencing with Google+. A deal of this magnitude might be looming soon.