Microsoft is buying LinkedIn for $26.2 billion (nearly Rs 1.75 lakh crore at 67 per dollar) in one of the world’s biggest tech deals. Microsoft is paying a premium of nearly 50 per cent for LinkedIn and the deal is likely to close by the end of this year. For Microsoft, the LinkedIn deal is a chance to reverse its mixed track record with acquisitions, including paying $9.4 billion for Nokia in 2014 and $6.3 billion for online advertising company aQuantive in 2007.
Here are the reasons why Microsoft is buying LinkedIn:
1) Microsoft is aiming to come to be the technology firm for the globe’s experts, helping them discover jobs, learn new skills and also do their work, state experts. With LinkedIn’s acquisition, Microsoft might be targeting at a Facebook-like entity oriented to business, with a range of companies centered around cloud computer.
2) The combination of Microsoft applications such as Word and also PowerPoint with LinkedIn’s network of over 430 million professionals will certainly allow Microsoft to add a collection of sales, advertising and marketing and recruiting services to its core business items. This will certainly allow Microsoft to challenge cloud software program opponents such as Salesforce.com Inc., experts say.
3) The acquisition will assist Microsoft mine LinkedIn’s consumers data to offer automatic tips and also various other features that make business processes quicker and also easier. According to Microsoft, the take care of LinkedIn will aid it increase the complete potential market size of its productivity and then business-process segment to $315 billion, up from $200 billion without LinkedIn.
4) Expert Jack Gold said LinkedIn “is very corresponding” to Microsoft solutions such as Skype for Company and then Yammer. The acquisition “gives Microsoft an excellent way to keep a pulse on what company customers are doing on the internet and then how they could utilize particular devices and also items,” he included.
5) The LinkedIn offer offers Microsoft the opportunity to play huge in the business world, according to CrispIdea Research study. “The item integration scenarios of Microsoft and also LinkedIn are quite compelling in locations like CRM … The deal additionally opens chances to Microsoft to additionally play large in permission and also authorization market,” the broker agent included.
