Microsoft catches up with Social collaboration – Acquires LinkedIn

Microsoft Corp. (Nasdaq: MSFT) and LinkedIn Corporation (NYSE: LNKD)  have  announced   that  Microsoft will acquire LinkedIn for at $26.2 billion, a  $196 per share   all-cash transaction.  This is widely seen as Microsoft’s bid to keep up with the recent technological changes in collaboration and analytical tools, something MS seems to have not been abreast of. With this bold step, Satya Nadella has put these opinions to rest.

Linked in, the world’s largest and most popular professional network, will retain its  distinct brand, culture and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction. The transaction is expected to close this calendar year. It is the merger with this brand culture that Nadella hopes, will give Microsoft a shot in the arm, and make an agile, innovative tech giant of it yet!

With the option of now connecting more than 433 million professionals globally, Microsoft will combine business content tools like MS Word and Powerpoint, to improve its sales, marketing and recruitment services.

“LinkedIn and Microsoft really share a mission” of helping people work more efficiently, said Microsoft CEO Nadella in a conference call with analysts. “There is no better way to realize that mission than to connect the world’s professionals.”

LinkedIn’s largest share of revenue comes from job hunters and recruiters. The site charges a monthly fee to post resumes and connect with people, since it is largely used for connecting for jobs or businesses.

With this acquisition, Microsoft will be in a good position to marry their strengths in   analytics, machine learning and artificial intelligence, with the database of LinkedIn, for mutual benefit.  So, by connecting Office directly to LinkedIn, MS can help share more information about attendees, directly from the sources.

In 2015 Linked bought Lynda.com for $ 1.5 billion, and now that it will be  a part of the Microsoft stables, this is Microsoft’s opportunity to converge the tools for analytics, network and big data.