The social media world is soon going to see a big change with the closure of the deal between Microsoft and LinkedIn. The online world is full of news about Microsoft buying LinkedIn for a whopping amount of $26.2B in cash. The transaction to acquire the professional network with around 433 million users has got approval from both the boards.
But there is much more you need to know about this deal. Have a look at the five things everyone in the digital marketing world should know about this acquisition.
1. What is the Deal?
Microsoft will acquire LinkedIn for $26.2B in cash or $196 per share. The leading professional social media platform has 433 million users including around 105 million active users and 2 million paid subscribers. Jeff Weiner will remain the CEO of LinkedIn.
2. Why did LinkedIn say Yes for the Deal?
As per an excerpt from the main Jeff Weiner sent to his employees, “When Satya first proposed the idea of acquiring LinkedIn, he said it was absolutely essential that we had alignment on two things: Purpose and structure. On the former, it didn’t take long before the two of us realized we had virtually identical mission statements. For LinkedIn, it was to connect the world’s professionals to make them more productive and successful, and for Microsoft, it was to empower every individual and organization in the world to achieve more. Essentially, we’re both trying to do the same thing but coming at it from two different places: For LinkedIn, it’s the professional network, and for Microsoft, the professional cloud.
Both of us recognized that combining these assets would be unique and had the potential to unlock some enormous opportunities.”
3. How Beneficial is the Deal for Microsoft?
This is a great deal with ample opportunities for Microsoft. The brand is putting itself front and center in the lives of business professionals. Acquisition of a leading company in B2B social networking with a huge user base gives it an opportunity to expand while offering more value to the existing users.
4. What will LinkedIn Get from the Deal?
Microsoft approached LinkedIn with many opportunities for it like the creation of an integrated professional profile and improved newsfeed for better connectivity. The most important part of the deal is that the professional social networking profile will retain its brand, CEO, and independence.
5. How will Marketers Get Affected from this Deal?
The brands promise to help individuals become more productive with improved skills, connections, and opportunities for sales and marketing. It seems quite interesting and compelling for the social media marketing experts.
It will also empower the professional with customized news and access to relevant professionals for better advertising options. So, this is a great opportunity for businesses and LinedIn marketing experts, who help brands, generate sales from this platform.