Microsoft buys LinkedIn for $26.2 billion

It also aims to take on challengers in several areas.

“The acquisition makes sense in respect of Microsoft’s link with enterprise in its cloud platform and portfolio of enterprise business services, it will help Microsoft build out its enterprise services capabilities”, said Mark Skilton of the Warwick Business School.

“This is about the coming together of the leading professional cloud and the leading professional network”, Nadella said.

Daniel Domberger, partner and co-leader of Livingstone’s global Media & Technology team, believes that the new formation could bring about changes to a professional’s working day.

“The Venn diagram is pretty big”, Nadella said in a separate call with Reuters, meaning the overlap of customers of both companies, although he didn’t give a precise number.

“I have always had a great admiration for LinkedIn”, Microsoft Chief Executive Satya Nadella said in a video on Microsoft’s website.

Bloomberg today reported that Morgan Stanley won the role as Microsoft’s adviser on its agreement to buy LinkedIn.

Hoffman made a cool billion dollars early Monday when Microsoft offered $26.2 billion in cash for his business networking site LinkedIn.

“We are in pursuit of a common mission centered on empowering people and organizations”, Nadella explained in an email to employees.

Both the company’s boards have approved the deal, and LinkedIn’s Chairman and major shareholder, Reid Hoffman, favoured the transaction.

And CEO Jeff Weiner, who joined the company in 2009, saw his stake increase $US6.8 million to $US21.6 million. LinkedIn’s Sales Navigator can revolutionize the sales cycle as background info about users will help open new opportunities.

LinkedIn went public in 2011 at US$45. Looking at financial results from LinkedIn over the past few years, the company hasn’t been profitable since 2013, and lost 6 million across 2015.

LinkedIn shares soared on the news of Microsoft’s bid. Moody’s said it was reviewing Microsoft AAA rating for a possible downgrade.

The company plans to combine its Microsoft Office suite, which is used by workers to complete tasks, with LinkedIn, which is used by workers to connect and communicate with each other.