Microsoft’s Acquisition of LinkedIn for $26 Billion; A Success Story or Disaster?
Monday, June 13th's news that Microsoft has decided to buy LinkedIn for $26.2 billion could have shocked some people because they are not sure whether the agreement paves way for success or a disaster.
The goal of both the companies is to keep growing. Microsoft will own the social network for work professionals and LinkedIn will carry on being its own brand maintaining its independence.
Jeff Weiner, the Chief executive officer of LinkedIn will report to his new boss, Satya Nadella , CEO of its new owner, Microsoft . Both will work together getting the best of Microsoft's professional cloud with the professional network of LinkedIn.
In the deal there are pros and cons like any other. LinkedIn numbers are pretty impressive but of late the growth curve has been slow moving. Though more members were added but users going through the sites pages were less resulting in slow advertising growth.
LinkedIn's online advertisement business climbed only approximately twenty percent in the fourth quarter in the year on year basis. According to a report, the growth was fifty six percent in theQ4 the year prior to that.
The slow paced growth kept the stocks down for the social network and gave Microsoft, a better opportunity to acquire the company for $196 a share instead of $270 a share last year.
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