The second biggest deal of Microsoft acquiring LinkedIn costs $26.2 billion. This is the sixth acquisition of Microsoft in the year 2016, which is the biggest deal if the tech giant out of its 196 acquisitions. Microsoft plans to influence 433 million users of LinkedIn in order to expand its business but this is not the only motive, there are a lot more reasons for this historic deal in between the two giants. Microsoft CEO, Satya Nadella finds this deal as joining hands of the world’s leading professional cloud and network.
Before joining hands with any acquisition Nadella asks three key questions.
- Will the asset expand Microsoft’s overall addressable market?
- Is the asset riding technical trends and secular usage?
- Will the asset able to align with company’s core business and and sense of overall purpose?
He defended the answer to all these questions is squarely yes with LinkedIn. Nadella shared his views on why Microsoft-LinkedIn deal made sense to him.
For Office 365 and Dynamics
LinkedIn is a professional network where people find jobs, build skills, sell and market and in the end get success. Office 365 and Dynamics will provide a vibrant network which will bring together a professional’s information on LinkedIn’s network as well as in Office 365z
New opportunities to monetize
This combination will provide new experiences like newsfeed and Office suggesting an expert to get in touch via LinkedIn to help them with a task that they are stucked with. The more this combination will be delightful the more their engagement will grow.
With this new ways can be created for monetization when individuals and organizations will subscribe.
The CEO’s of Microsoft and LinkedIn together believe that Microsoft can give acceleration in the growth of LinkedIn. Microsoft’s features may bring a great value to LinkedIn’s users. Founder of LinkedIn, Reid Hoffman, calls this as “re-founding” deal for LinkedIn to reach the goal set 13 years ago for the company.
Growth of Office 365 continues
Microsoft moved Office from productivity tools set to a cloud service for any platform and device. This deal will move Office 365 and Dynamics more upwards by connecting them to world’s largest professional network.
Aligning LinkedIn growth with Microsoft’s vision
Nadella says this deal will mainly accelerate LinkedIn’s growth. Through this LinkedIn can retain its distinction of brand and independence. Jeff Weiner will remain the CEO of LinkedIn and join the senior leadership team of Microsoft. As reported Nadella says, this deal will keep the team of LinkedIn to focus on driving results and along with this integrating plan with Office 365 and Dynamics team.
In process with this integration Microsoft will also choose other projects too so that new features for customers experience can be included.