Microsoft to purchase LinkedIn for $26.2 billion
Tech giant Microsoft announced their plans to purchase LinkedIn, the business oriented social media site, for $26.2 billion. The deal, not only the largest in Microsoft history, is one of the largest deals in tech history. The deal appears to make sense for each group, as Microsoft has been looking to expand their brand, whereas LinkedIn lost money last year, a common side effect of growth. Microsoft is also hoping that this deal doesn’t go the same way its deal with Nokia or aQuantive went, considering both were multibillion dollar deals that were total flops.
Microsoft seems to be betting on the trend that the software industry is moving more and more towards cloud computing, wherein customers basically rent software and other services on the internet itself. The move also reaffirms the current Microsoft chief’s, Satya Nadella, vision for the future of Microsoft as moving away from the traditional PC software model that helped Bill Gates turn Microsoft into the giant they are.
The deal calls for Microsoft to purchase LinkedIn stock at $196 per share, much higher than the $130 it was trading at. With the backing of Microsoft, LinkedIn should be set for some time, as the old guard of tech is merging with the new kid on the block. LinkedIn, as some of you might know, recently suffered some security issues, with millions of passwords being compromised. LinkedIn has since started to clear the issue, but with over 400 million users and people paying thousands of dollars a month to fill job openings, it’s plain to see that this deal should truly benefit both sides.