Friday, June 24, 2016

Microsoft bolster its business by buying LinkedIn for $26.2Billion

Microsoft is set to acquire the professional business social network of $26billion all in cash transaction

Recently, in a conference Satya Nadella – CEO of Microsoft gave a shocking announcement to buy LinkedIn in billions of dollars. This is the largest acquisition in history for the world’s largest software company. And this deal make sense for both the companies. The largest acquisition deal till date could make the host integration between Microsoft and LinkedIn across the tools like office, outlook, calendar, Skype.

The company said that LinkedIn will continue to operate as usual. Jeff Weiner will still remain CEO of LinkedIn reporting to Satya Nadella. It was also reported that, transaction is expected to end by the end of 2016. This is the very smart move for the company, as it is trying to strengthen its position in the market.

LinkedIn could essentially become the “social fabric” behind all of Microsoft’s products, CEO Satya Nadella quoted in a conference. “It’s the bringing together of the world’s professional cloud with the world’s professional network,” Additionally he also added that, many business models could be applied to these integrations, from subscriptions to advertisements and social selling.

LinkedIn is the world’s largest and the most professional network and continuous to build the strong growing business. In the recent years, company has shown many updates in its mobile apps and this has led to enhance member’s engagement, business insights and much more. Nadella also quoted “The LinkedIn Team has climbed the ladders measuring the success on connecting’s world’s professional. 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.”

By integrating with LinkedIn, Microsoft user could access the latest updated profiles as well as the professional connection to generate the sales lead. Microsoft is also looking way forward to defeat Salesforce. Sichenzia one of the associate also quoted that “A lot of people feel that LinkedIn and Microsoft has become stagnant and it couldn’t grow beyond what is already done. The excitement is not anymore. By this deal, Microsoft will be the best partner and it will help it to grow in the ways it has become stagnant. And LinkedIn on the contrary, will put Microsoft at the level of more socially relevant company.”

There are also some other specific ways that, Microsoft and LinkedIn could strengthen each other’s product. For instance, LinkedIn offers Facebook-style newsfeed to the users. Microsoft plans to integrate those news feed into Office 365, allowing users to keep track of developments in their professional network while they are working on doc files and spreadsheet.

Access to the LinkedIn’s information will especially be helpful for Microsoft’s customer relationship software. CRM is considered as a software tool for maintaining the long term relationships with the customers. This deal has been unanimously approved by both the company’s board of directors and is subject to approval by LinkedIn’s shareholder and other regulatory approval.

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