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With *Only* $26.2B Microsoft Makes Debut To Social Media with Purchase of LinkedIn

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With *Only* $26.2B Microsoft Makes Debut To Social Media with Purchase of LinkedIn

Earlier this week the software company Microsoft made the announcement that they were in the process of purchasing LinkedIn to take under their wing. While the deal has yet to be finalized, both sides have confirmed that the sale is underworks as it has been approved by both of the corporation’s boards, but the deal still has to be checked through regulations and receive approval to official follow suit.

Microsoft was able to get the deal by offering $26.2 billion for the social media site, which amounts to $196 per share of the company. But as the deal has yet to go through, the current owners of LinkedIn are not in the clear yet to get their money. If the deal ends up falling through due to issues with regulations, LinkedIn will be at fault and will have to pay the consequences. To be exact, that would be $725 million in consequences that LinkedIn will have to pay Microsoft, in termination fees.

Under their deal, the LinkedIn will continue to keep its name, brand and product, but will now run under Microsoft’s business product and management. Microsoft’s management will now have LinkedIn management under their belt to follow their lead as a part of their business process.

While Microsoft is taking the lead on this deal, both companies are benefitting from this exchange. Microsoft was looking to dig more into the social media world and entering a professional enterprise was exactly up their alley. LinkedIn’s business attention, wide range of users and software updates, including their new sub-company Lynda.com, made the company a great addition to the Microsoft Empire.

Lynda.com, the new subsidiary of LinkedIn is an online learning tool that teaches courses, and helps LinkedIn users by offering online tools to improve their education and hire ability. With the addition of the Lynda.com learning opportunities that LinkedIn users have, the investment was a great tradeoff for the Microsoft Corporation.

With its new deal with Microsoft, LinkedIn also benefits as they get to keep their brand and product intact, but get to use the Microsoft software to grow and improve. The company was rumored to be in a bind as it was expected to fall behind compared to other companies with better budgets and software technology. But even through these rumors LinkedIn was a competitive brand to watch out for, and Microsoft’s acquisition of the company came with great luck and a great price. With a presence in over 200 companies and well over 400 million users, LinkedIn has done quite well for itself so far under the great leadership of CEO Jeff Weiner. It’s apparent that this deal was a win-win situation, a mutual tradeoff for the companies.

Well, not exactly a mutual tradeoff considering the hefty funds Microsoft had to put down to seal the deal. At $26.2 billion dollars, many speculate that the Microsoft Corporation overpaid for the acquisition of LinkedIn. However, it still could be worth their while.

The combination of two of the leading professional services, from the works of Microsoft Office, to the networking and career searching uses of LinkedIn, this new deal might just be the partnership that businesspeople need in their digital services. Given that this deal goes through, I’m certainly looking forward to seeing the changes and improvements of the LinkedIn outlet.

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