Microsoft Corp has shaken up the tech industry with its latest and largest acquisition of the social network LinkedIn.
Microsoft Corp Acquires LinkedIn Corp in a $26.2 Billion Deal
For a disclosed sum of $26.2 billion, Microsoft is looking to boost its software offerings with the social network platform.However, both companies have been struggling recently.
Microsoft’s CEO Satya Nadella has played a key role in brokering the deal in an effort to boost Microsoft, which seems to have been overtaken by technological changes in the industry.
Mr. Nadella is looking for the deal to boost the performance of Microsoft Office suite and LinkedIn as well. Both companies have currently saturated their markets and are looking for new opportunities to increase revenue and improve their competitive position in the market.
According to Mr. Nadella, the idea is to connect professional workers with tools they can use to get their work done such as Microsoft Office offerings.
“It is really the weaving together of the professional network and the professional cloud,” he said in a statement on Monday.
For example, a direct connection between Office and LinkedIn could allow meeting attendees to learn more about each other from their calendar invitation.
Microsoft also sees the potential offered by Lynda.com, a platform that offers trainings through videos. Last year, LinkedIn bought Lynda for $1.5 billion. Through this platform, Microsoft will be able to offer videos within its software, including Excel spreadsheets.
Mr. Nadella further spoke about allowing Cortana, its digital assistant, access to LinkedIn data.
This deal offers LinkedIn renewed hope for reversing its slow growth. Shareholders will also have a viable exit after the company’s stock fell dramatically from its highpoint of $269 in early 2015 to a low of $101.11 at the start of this year.
Microsoft will purchase each LinkedIn share at $196, with both boards agreeing to the deal. Jeff Weiner, LinkedIn CEO will continue with his current job following the closing of the deal by the end of the year.