Despite LinkedIn dealing with a massive data breach not too long, the company is still attracting a lot of positive attention. So much even that Microsoft will acquire the company for US$26.2bn, all of which is to be paid in cash. The social network for professions will retain its brand and CEO, though.
Microsoft Wants LinkedIn Very Badly
This news comes as quite a surprise, as very few people were aware Microsoft had any interest in LinkedIn whatsoever. The acquisition is a big deal for the social network, though, as it can use some positive news after the recent data breach. That negative news has not done much to diminish the value of the platform, though, as Microsoft will still pay over US$26bn in cash.
What is even more interesting is how LinkedIn will not be making any sacrifices as part of this acquisition either. The CEO will remain in place, albeit he will report to Satya Nadella, CEO of Microsoft. Such an agreement seems to suit LinkedIn CEO Jeff Weiner and co-founder Reid Hoffman just fine, as they both support the acquisition for the full 100%.
At the time of writing, it was unclear as to when this deal between both parties will materialize. Boards of directors of both companies have unanimously approved the acquisition, so that will no longer be a hurdle either. One thing that will change is how LinkedIn’s financial will have to be reported to Microsoft’s Productivity and Business Processes division.
Many people are wondering why Microsoft has taken such a keen interest in LinkedIn, though. Up until this point, the technology giant has shown zero interest in becoming a social network player. Based on the information found in the brief press release, it appears as if both companies share an agenda that focuses on changing the way the world works.
Moreover, it seems as if this acquisition will focus on three main components: LinkedIn, Microsoft Office 365, and Dynamics. That being said, there are still questions to be answered as to whether or not this acquisition is worth the US$26.2bn price tag. Either way, this acquisition is significant, and it will be interesting to see what the future holds.
Source: Ars Technica
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