One of the world's biggest and cash rich corporations, Microsoft announced today that it is going to acquire business networking website LinkedIn in the biggest acquisition that the company has ever been involved in, according to statements released by both companies. LinkedIn forms Microsoft's first foray into the business networking space and following the announcement of the all cash deal worth $26.6 billion, shares of LinkedIn soared by a whopping 48% while Microsoft's shares suffered a 4% knock.
Microsoft CEO Satya Nadella was effusive of his praise of LinkedIn as a company in his statement, "The LinkedIn team has grown a fantastic business centered on connecting the world's professionals.Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet." On the other hand, LinkedIn CEO Jeff Weiner will continue in his position and Nadella would be his boss from now on in, however no other major management changes are going to take place at LinkedIn. Weiner did say as such in his statement following the deal,"little is expected to change and employees will have the same titles and managers.The one exception: For those members of the team whose jobs are entirely focused on maintaining LinkedIn's status as a publicly traded company, we'll be helping you find your next play. In terms of everything else, it should be business as usual. We have the same mission and vision; we have the same culture and values; and I'm still the CEO of LinkedIn."
Trade experts have also been largely well disposed towards the deal. Ivan Feinseth, the CIO of Tigress Investment Partners spoke to CNBC and spoke highly about the potential of the deal. "This is a great deal LinkedIn is the ultimate business social platform. You have everybody on this, from interns and college students on up to the biggest CEOs.This is a good way for Microsoft to expand in social platforms."