Nearly everybody knows about Microsoft a multinational American company founded by Bill Gates.
Last Year Microsoft's brand was valued at $62.8 billion.But Few Days ago Microsoft Done its biggest deal by Buying the famous Social Networking Site Linkedin in a cash transaction for $26.2.Microsoft announced that it has reached an agreement for the purchase of LinkedIn.
The States that social network for professionals should be acquired for a total of US $ 26.2 billion, about $ 196 per share.
Linkedin comes under the category of social network used mainly to find professionals and work connections.
Linkedin was founded in the year 2002 and has now have approximately 400 million users.
Many users create their profile in linkedin to share there resume in order to find the jobs.
Sources says that LinkedIn will retain its distinct brand,independence, and culture. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction. The transaction is expected to close this year.
Satya Nadella the CEO Of Microsoft said “The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”
The current CEO Of Linkedin Jeff Weiner said “Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network now gives us a chance to also change the way the world works. For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”
The co-founder and executive chairman of Linkedin Reid Hoffman said “Today is a re-founding moment for LinkedIn. I see an incredible opportunity for our members and customers and look forward to supporting this new and combined business,I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”
But still,there was some cautious optimism that this could be one of the relatively few tech mega-mergers that works out well. "It's a massive growth play for Microsoft," said Forrester analyst Ted Schadler.
Microsoft Shows a weak track record in M&A, the one prior major deal on Nandella's watch - the $2.5 billion purchase of video game maker Minecraft in 2014 - is generally considered to be a great success for Microsoft, complementing Microsoft's work on virtual-reality projects such as the HoloLens headset.
Despite Microsoft's weak track record in M&A, the one prior major deal on Nadella's watch - the $2.5 billion purchase of video game maker Minecraft in 2014 - is generally considered a success, complementing Microsoft's work on augmented-reality projects such as the HoloLens headset.
With the purchase of LinkedIn, Nadella is solidifying Microsoft's focus on the business market, where it has retained a much stronger position than it get in smartphones business.
In touting the synergies of the deal, Nadella gave an example of a customer walking into a meeting scheduled on a Microsoft Outlook calendar integrated with LinkedIn. That person might receive notification that one of the people in the meeting went to college with a colleague, enabling another level of connection.
"The future of productivity is around people, identity and data and the relationships between the them," said Matt McIlwain, a portfolio manager at Madrona Ventures.
"Microsoft is buying LinkedIn for the opportunity to leverage these capabilities and combine them with Microsoft's strong but complementary assets in those three areas."
Microsoft is a billion doller company and with these steps they show us example of there power and place in market
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