Microsoft Ready to Purchase LinkedIn for a Massive $26.2 BillionPublished June 13, 2016 by Florin P
Microsoft acquires LinkedIn in blockbuster deal overseen by Satya Nadella.
Since being appointed as the new CEO of Microsoft, Satya Nadella made a few bold moves and acquisitions. All of them are about to be dwarfed by this purchase, estimated at more than $26 billion. The company has announced its plans to acquire LinkedIn for this huge amount and the acquisition is expected to conclude at the end of 2016. The boards of directors unanimously approved the deal and are optimistic about its impact on both companies.
LinkedIn to Retain Brand and Independence
Satya Nadella was impressed by LinkedIn’s ability to connect professionals from all over the world. More than 400 million people rely on LinkedIn to find jobs, stay in touch with old friends and colleagues and some of them pay for the premium services. Microsoft might be the new owner, but its representatives have agreed that for LinkedIn to grow at the same accelerated pace, it would be better if the company would retain its independence and brand.
This is the most important acquisition made by the new CEO, although Microsoft has invested massively in other companies. In the wake of this announcement, the shares of LinkedIn increased by nearly 50% while Microsoft’s stock moved into the opposite direction albeit by only 3%. LinkedIn shareholders still need to approve the acquisition, but the wheels are set in motion and it looks like it’s only a matter of time
What Happens Next with LinkedIn Employees?
CEO Jeff Weiner was quick to dismiss any rumors about major changes and emphasized the fact that for the employees it will be business as usual. He will remain in charge and report directly to the Microsoft CEO Satya Nadella, with the vast majority of workers also retaining their positions. The odd exception will be those who used to focus on maintaining the company’s status as a publicly traded venture.