Microsoft buying LinkedIn for $26.2 billion
Microsoft, in a surprise move Monday, announced plans to acquire LinkedInin a $26.2 billion deal that aims to reinvent Redmond’s productivity tools and communication tools efforts.
Under the deal, which is expected to close by the end of the year, Microsoft will operate the social media networking behemoth as an independent operation that will retain its name, its current CEO Jeff Weiner, and its company culture. While Weiner will have the ability to decide which specific aspects of LinkedIn and Microsoft to integrate, he will be partnering with Microsoft’s Office 365 and its CRM and ERP Microsoft Dynamics teams on various products that can be integrated.
In a video interview posted within Microsoft’s announcement, Microsoft CEO Satya Nadella explained the reasoning behind what would seem on the surface an unusual acquisition with few cross-benefits to the companies:
I’m a deep believer in productivity tools and communication tools, because that is what empowers people to be great at their job. But think about taking that and connecting that with a professional network and really having the entirety of what is your professional life be enhanced, more empowered, where you are acquiring new skills and being more successful in your current job and finding a greater, big, next job.
That’s the vision and I’ve been talking with [LinkedIn cofounder and chairman Reid Hoffman] and Jeff for a while. The fact that it came together now is fantastic, but believe me, I’ve been thinking about this for a long time.
In his letter to employees, Nadella noted that when he considers an acquisition, he looks for whether it will expand Microsoft’s opportunity and addressable market, whether the target company is “riding secular usage and technology trends,” and whether it’s aligned with the Redmond giant’s core business and sense of purpose.
names and data..feed the machine..its hungry..
“Microsoft will operate the social media networking behemoth as an independent operation that will retain its name, its current CEO Jeff Weiner, and its company culture.”