Microsoft acquires LinkedIn:
“Effectively, change is almost impossible without industry-wide collaboration, cooperation and consensus. “ – Simon Mainwaring
A deal that grabbed eyeballs across the globe and increased the shares of LinkedIn by a 47% surge is definitely worth making the headlines. LinkedIn is a leading business and professional networking service that has a membership growth of approximately two members per second. A LinkedIn profile is essential in having a valid and recognized presence in the professional market.
Due to a relatively inactive period in Microsoft’s media presence, this deal is seen as a game-changer in integrating all the benefits and profits accumulated by Microsoft and LinkedIn independently. This also highlights the vision and presence of Satya Nadella’s role as the CEO of Microsoft.
As Microsoft provides a lot of office related and professional related tools and packages, this merger will accelerate the growth of the professional services market and technology. This deal is also seen as Microsoft’s foray into the social networking world.
As for the employees of LinkedIn, there isn’t any significant change in their nature of work or titles or organization. LinkedIn essentially retains its inherent identity while working in tandem under Microsoft.
This trend of acquisition of companies by giant companies is seen as a positive collaboration for mutual benefit. Upon asked for comment, CEO’s of various companies commented that they saw this deal as a positive and beneficial deal.
Mark Hawtin, investment director at GAM commented that he thought both companies benefitted in the deal. Hawtin, who is a share owner in both the companies was quoted saying:
“[Microsoft] can now provide this social fabric which I think is going to be so important in this network economy. For LinkedIn, I think it also gives them a chance to have a jump start to move the business more rapidly.”
The deal is expected to be finalized within 2016, as the deal has been unanimously approved by the boards of directors of both companies.
Reference: The quote from Mark Hawtin is from the CNBC “Closing Bells” interview
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