Microsoft, yesterday, announced its acquisition of LinkedIn, and all the trade pundits are already calculating its pros and cons. While they do their thing, we tell you about the 10 talking points of this crucial deal.
10 Things you should know about Microsoft-LinkedIn Deal
- Microsoft has announced that it will be acquiring one of the biggest professional networking website, LinkedIn for $26.2 billion.
- It is an all cash transaction, with $196 paid per share which is at a premium of 49.5%.
- The acquisition of LinkedIn is Microsoft’s biggest ever deal under the tenure of its current CEO, Satya Nadella.
- Jeff Weiner, the current CEO of LinkedIn will remain to be so and shall report to Satya Nadella directly.
- Microsoft is planning to close its acquisition later this year, and the deal has been collectively approved by the boards of directors of both companies.
- As reported by Economic Times, Morgan Stanley is acting as exclusive financial advisor to Microsoft, while Qatalyst Partners and Allen & Company LLC will serve as financial advisors to LinkedIn.
- LinkedIn has a network of over 433 million people, which is growing everyday and this will help Microsoft to improve its market in the consumer internet sector.
- The deal is termed as the combination of ‘World’s leading professional cloud’ with ‘World’s leading professional network’.
- Earlier in 2012, Microsoft did try their hand in social media by acquiring Yammer for $1.2 billion, but due to undisclosed reasons, the deal did not eventually work out.
- Nadella was quoted as saying, “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.”
This deal was indeed a major acquisition considering the amount of money involved. Below is an image that will give you a glimpse of other big acquisitions in the tech field.
Image source – Time.com