Microsoft dug deep into its pockets in order to buy LinkedIn. A jaw-dropping $26.2 billion was produced to complete the purchase. You can expect no less for a thriving social network dedicated to business individuals. The creators of LinkedIn were only happy to come on-board, too. According to co-founder Reid Hoffman, the merger with Microsoft was a ‘natural fit’.
In May, Hoffman admitted that the two companies had no intention to become one at first. Microsoft and LinkedIn were merely looking for great ways to work together. As time went by, the two corporations felt it best to merge. The social network’s co-founder shared this during a business lunch at Technology Alliance.
Since LinkedIn is dedicated to professionals, their careers, passions and productivity, and Microsoft seeks to enhance the productivity of corporations, the two organizations had “this natural alignment,” Hoffman reported. The deal was finalized in December last year. The money produced by the Windows giant still has the technology scene taken aback. Paying close to $27 billion is no light merger. As far as tech acquisitions go, the LinkedIn purchase is second only to Dell’s nearly $70 billion adoption as EMC in 2015.
Yet very few people dispute it was money well spent. Now one of the globe’s leading enterprise software giants has a formidable social network at its disposal. The deal came with a number of props too. Hoffman now has a seat on the Microsoft board of directors.
That decision wasn’t originally on the cards though, the co-founder said in May. After the buyout was finalized, the two powers considered whether just purchasing LinkedIn would be good enough. “Is it the natural fit for what the company should do?” was the question both parties mused on for a while. A while later, Hoffman was introduced to the Microsoft board in March 2017.
Natural LinkedIn fit leads to greater Microsoft profits
The co-founder believes the potential for greater Microsoft partnerships through LinkedIn is great. As it stands, Hoffman is also on the board of Blockstream, Convoy and Edmodo. In addition to that, he is working on enhancing Microsoft’s ties with other Silicon Valley companies.
The ways in which LinkedIn can boost Microsoft’s online presence seem endless. Social selling comes to the fore as the two corporations move forward together. For instance, the social network will send Microsoft Dynamics 365, the software giant’s cloud CRM and ERP suite, to new heights.
According to The Var Guy, innovative ways to promote products via the network will no doubt arise from this merger. Microsoft stands to revive its online advertising power through LinkedIn, as well.