That’s it. It’s done. Microsoft has purchased the professional social networking website LinkedIn for $196/share which totals up to $26.2 billion. That is a huge sum of money in any market. Microsoft will gain from this purchase by integrating LinkedIn to their applications like Skype and Office and they have also assured that they will not be changing the core platform of the website. In fact, LinkedIn CEO, Jeff Weiner, is staying on board to keep running the things as planned.
According to Microsoft, LinkedIn and Cortana are a match made in heaven and their integration will work wonders. In addition, it will also allow users to integrate Office and Microsoft Dynamics into their everyday business lives. Microsoft is also planning to allow experts to help you while using Office programs via social media integration, bringing the social business platform into the tools that most people use on a daily basis.
This is a big move for Microsoft, especially after the Nokia fiasco, which is also the company’s first move into the social media scene. LinkedIn, with its 400 million+ users, is no small deal and Microsoft is ready to take it head on. It is also a shift in Microsoft’s overall plan for their company which is shifting towards fully integrative cloud services to enhance their image and business.
It’s a win-win situation for both Microsoft and LinkedIn as both companies will benefit from each other. Microsoft will allow LinkedIn to branch out from the purely software based business they are in now, and LinkedIn will allow Microsoft to expand off of their current platforms and into more social arenas. Here is LinkedIn CEO, Jeff Weiner, discussing the buyout with Satya Nadella.