On Monday, June 13, Microsoft revealed its biggest-ever acquisition – LinkedIn – the social network for professionals. The total purchase is worth $26.2 billion, at $196 per share.
According to Mr. Satya Nadella, LinkedIn joins Microsoft’s Productivity and Business Processes segment but still remains a separate brand with its own culture. Jeff Weiner retains his LinkedIn position as Chief Officer.
This is not Microsoft’s first purchase with the aim to enter new markets or improve growth opportunities. Earlier this year, Microsoft Corporation bought Xamarin to make it free and open source, encouraging developers to cross-platform mobile development.
With this purchase, Microsoft enhances its enterprise market by
1) integrating its products into LinkedIn,
2) obtaining keys to LinkedIn’s vault of valuable user data and the social networks’ unique experiences and competencies which Microsoft does not possess,
3) accessing valuable resources like Lynda, Slideshare and Sales Navigator.
In its turn, LinkedIn gets an injection of investments and support from one of the biggest software enterprises worldwide which will help this professional network accelerate its growth.