Tech Giant and Professional Network Say “I Do”
Microsoft and LinkedIn just announced that they have decided to become one. According to reports, Microsoft plans to buy the professional social network for a cool US $26 billion in cash money.
So, why is this happening?
The merger is a win-win situation for both companies. Linking up with LinkedIn allows Microsoft to dive into enterprise social media services. While LinkedIn can have some peace of mind in an increasingly competitive market. In other words, LinkedIn can now be more competitive when matched up against other companies using their social graphs to potentially compete against the professional network.
What does it mean for us – the average LinkedIn user?
Not to worry, even though LinkedIn will become part of Microsoft’s productivity and business processes segment, it will still keep its branding and product.
Is the deal finished or is it done?
The short answer is “no.” Both companies’ boards have given the go ahead. LinkedIn co-founder Reid Hoffman led the deal. In a statement, he said “Today is a re-founding moment for LinkedIn. I see 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.”
LinkedIn CEO Jeff Weiner also had positive things to say about the new partnership. Weiner penned a blog post where he said that this merger is simply just the next phase in the company fulfilling its mission. Read the full post here.
But, there is still more to do. More hoops to jump through to finish the deal. Regulators in the United States, the European Union, Canada, and Brazil still need to give LinkedIn and Microsoft their blessing.