Tech giant Microsoft has acquired LinkedIN for $26.2 billion in the largest acquisition it its history.
The deal is Chief Executive Satya Nadella’s latest effort to revitalise Microsoft, putting social media at the heart of the company’s offerings.
Mr. Nadella said today’s work is split between tools workers use to get their jobs done, such as Microsoft’s Office programs, and professional networks that connect workers. The deal, he said, aims to weave those two pieces together.
“It’s really the coming together of the professional cloud and the professional network,” he said.
Microsoft will pay $196 per LinkedIn share, a 50 per cent premium to the social network’s closing price on Friday.
Martin Moran, EMEA SVP and GM at InsideSales.com, said Microsoft’s acquisition of LinkedIn is a big data buy.
“LinkedIn has the most unique pool of data in the social media business because it’s focused on business professionals, so it’s more valuable to B2B-focused businesses. The relationship, career and general interest data of over 400 million people is normalised and anonymised, and that’s what makes this stunning sum of money make a lot of sense. Well-curated and relevant data is considered equivalent to be the crown jewels for enterprise software businesses today.”