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Wednesday, June 15, 2016

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Microsoft acquires LinkedIn in $26.2 Billion Deal

Oyetoke Tobi - Wednesday, June 15, 2016

This week Monday was an entirely different one for LinkedIn's employees. Apart from the fact that it was distinct from the one they experienced last week, they were greeted with one of the most important news in the history of the company - a new family is about to adopt them. 

Microsoft announced that morning that it was buying the business-oriented social network in a $26.2 Billion deal. Now, the company will enter into another phase of its history by becoming a part of the Microsoft family. As it was gathered, the value of the business was an accumulation of its shares of $196 each and net cash. However, the acquired company will still maintain its culture, independence, and brand, while Jeff Weiner will continue as the CEO.

Satya Nadella, the Microsoft CEO, commended the team at LinkedIn for their efforts in building the business to the successful brand which centered itself as the connector between professionals all over the world. He further claimed that the goal Microsoft is aiming to achieve in acquiring the social network is to accelerate the growth of Dynamics, Microsoft Office 365, and LinkedIn, so all professionals and organizations on the globe can be empowered. 

In the new development, LinkedIn’s Board chairman and co-founder, Reid Hoffman, and Weiner were in support of the acquisition and transaction. While narrating his opinion, Hoffman called the moment a re-founding one in the history of the LinkedIn. He explained how he backed the Board’s decision to pursue the transaction because he identified a fantastic opportunity awaiting the customers and members of the firm alike. 

In light of the continuous growth of the social network, it currently has more than 433 million users worldwide, and it boasts a unique monthly member visitation of 105 million. Microsoft is aiming to use the key recruiting tool for Office's development as was explained in Nadella’s letter to employees. He called the deal a bold step forward for Dynamics and Office 365 as they both integrate into the most valuable professional social network in the world.

Backing Nadella’s words, Weiner revealed that there will be a change in the way the world works. With the incorporation of the cloud service of Microsoft and LinkedIn’s network, the way professionals connect is bound to change better than how LinkedIn changed it in the past. 

For the CEO of LinkedIn, this is a dream come true. Now is the chance for him to lead his team in what he termed as "the next chapter on the company’s timeline" to continue chasing its 13-year-old- goal of making professionals more fruitful and productive. 

However, Nadella has promised that there won’t be an immediate change to the current organization of the company in his internal memo. He stated Microsoft’s desire to maintain the focus of the team at LinkedIn so they can continue driving results while work on product integration continues. 

The deal is yet to close fully, and it’s expected that by the closing of 2016, Microsoft will move to complete the deal.



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