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Microsoft’s High-Flying $26.2 Billion Plan To Buy Linkedin

Yesterday (13th June,2016) Microsoft Corp. decided to buy LinkedIn Corp. in a valuable deal priced at $26.2 billion. In its blog, the IT giant has announced a possible payout of $196 per LinkedIn share. The number 1 networking website run by CEO, Jeff Weiner will continue with his responsibilities as the CEO of LinkedIn. The current changes will make Weiner report to Microsoft CEO Satya Nadella.

This acquisition is currently regarded as a high priced deal in the technology marketplace. There have been reports of recent struggles for both the companies. Microsoft and LinkedIn’s collaborative efforts will reportedly bring in major shifts in technology. Mr. Nadella has expressed his positive views on new horizons that are all set to open up for both parties. LinkedIn will benefit greatly from the technology viewpoint whereas Microsoft will also be gaining a lot from the networking point of view. With this deal being sealed there will be millions of Asian profiles in Microsoft’s kitty.

The highly competitive market is viewed as having its overt and covert splits. With two hugely different entities coming together in one single umbrella, is surely the dawn of a new era.

For LinkedIn this deal brings new hope as the share prices had gone down from $269 in February 2015 to a low rate of $101.11 last February. Growth possibilities are high for LinkedIn. Mr. Nadella has already briefed on giving Cortana digital assistant access to data from LinkedIn. Previous efforts on positioning itself on the social networking platforms have somewhat remained dim for Microsoft. With this deal with LinkedIn, Microsoft hopes to gain momentum on social networking.

Mr. Nadella plans to restructure Microsoft, as its growth (calculated in the last quarter that ended on March 31, 2016) has been a mere 1% in the area of productivity and business processes. Industry experts like Brent Thill, UBS Securities LLC analyst have stated that this deal has high potential to being success not just for both the companies but for the technology marketplace as a whole. The deal will reportedly add to Microsoft’s per-share earnings in 2019. There are minimum negative impacts expected from LinkedIn as it will be an integral part of Microsoft’s productivity and business processes segment. Adjusted earnings for Microsoft will grow in fiscal 2017 and 2018 years.

Being rated as one of the top strategic moves, this deal is a collaboration of hopes and potential winnings in the near future.