For $26.2 billion, Microsoft purchased Linkedin as an effort to modernize their platform.
Microsoft Chief Executive Officer Satya Nadella believed that the deal will open new opportunities both for Microsoft and Linkedin. Mr. Nadella also hoped that it will extensively boost Microsoft’s profit.
In an interview, Mr. Nadella said that the deal was the coming together of the professional cloud and network. He added that the recent action also aims to put together the tools workers use to get their jobs done and the professional networks that connect workers.
Microsoft acquired more than just the professional network. It also secured the video channel Lynda.com which was purchased by Linkedin for $1.5 billion last year. The deal enabled Microsoft to integrate Lynda’s videos into its own software just like Excel spreadsheets.
Microsoft agreed to pay $196 per LinkedIn share, a deal approved by both platforms. Linkedin Chairman and Controlling Shareholder, Reid Hoffman, backed the transaction. The purchase will put a test on Microsoft’s capability to mold a large acquisition in its operations.
