Microsoft to buy LinkedIn for $26.2bn
Let us go through the frequently asked questions What, Why and How??
- What are the advantages for the Microsoft if it buys LinkedIn for such a huge price?
- Why is the tech giant investing a lot to buy a website?
- How they are buying this web site?
Let me start answering the first question… “What are the advantages for the Microsoft if it buys LinkedIn for such a huge price? What will Microsoft get when it buys LinkedIn for a whopping price of $26.2bn?”
The answer is simple: Microsoft can integrate their current web technologies and enter into a professional social networking site. This would enable a lot of opportunities for the products like Office 365, integration of LinkedIn into outlook and others. Below is the statement was given by the CEO of Microsoft and Mr. Woods
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said in a statement. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.” Also as per Mr. Woods, “That’s a valuable asset that can be deeply integrated with a number of Microsoft assets such as Office 365, Exchange and Outlook. That said, Microsoft has stated that the company will continue to operate as an independent business, so we’ll have to see how deeply the integration occurs,”
Coming to the second question on why the tech giant wants to invest a lot of money buying just a website, this is to integrate all the existing Microsoft technologies and provide a lot better experience to their users!! LinkedIn acquired open-source teaching website Lynda.com for about $1.5bn, now this Lynda.com API could be integrated with the Microsoft office to provide the users tutorials if they haven’t understood a particular tool.
The third question on how they are buying the website. Microsoft said it would be paying in cash of $26.2bn. This price is obtained by paying $196 per LinkedIn share, a 50% premium to Friday’s close.
There is something that notably has happened, the share of LinkedIn has dropped 42% so far this year through Friday’s close and suddenly it jumped 48% to $192.46. But unfortunately many people didn’t like the deal and hence the shares of Microsoft fell by 2.9%
The LinkedIn offices, culture and everything is going to be the same and the CEO Jeff Weiner will report to Microsoft CEO Satya Nadella.
Let’s hope something amazing will happen in the near future!!!
Let’s stay excited! Let’s play safe! Stay Tuned!!