Microsoft acquires the biggest professional network in the world for $26.2 billion. The company intends to integrate the professional platform into its numerous apps and services ranging from Office, Cortana and Skype. For instance, when working on an Office 365 project, an expert can assist you, or details of the person you are meeting for a business deal can easily be obtained. It should also be worth noting that Microsoft has vowed that LinkedIn‘s overall independence will be maintained, including the role of the CEO Jeff Weiner, and hopes to close the deal sometime in 2016.
According to to Techcrunch report, LinkedIn has 105 million monthly active users in more than 200 countries. The report further states that LinkedIn has 60% of all traffic on mobile and about 45 billion page views quarterly, thanks to some strong SEO.
Why would Microsoft need LinkedIn?
According to Microsoft’s Satya Nadella, LinkedIn is a perfect fit. You need a “connected professional world” to get things done, whether it’s getting help with a spreadsheet or fleshing out details in a customer relations tool like Microsoft’s Dynamics, he said.
The corporation is intentionally keeping a distance, and Nadella sees two viable revenue streams in the form of subscriptions and targeted ads.
This is a remarkable way for Microsoft to announce its presence in the social networking world. And it makes absolute sense since LinkedIn has 433 million members and is in no direct rivalry with Facebook or Twitter. Thanks to the guidance of Nadella, this is also an indication that corporation’s reliance on Windows is reducing and much emphasis now laid on cloud services. This also implies a change in computing landscape where Windows now will start becoming a service provider.
This deal has cleared all doubts about questions of how LinkedIn was ever going to compete with other companies that are in the business of building more software that would bring about competition.