Should Chief Executive Jeff Weiner be endorsed for his deal making skills after agreeing to LinkedIn’s latest arrangement?
Microsoft is switching to the modern social world in its latest purchase of the popular business network LinkedIn. A whopping £26.2 billion was spent on this social network, shifting Microsoft’s focus and starting a new adventure for them. Chief executive of Microsoft, Satya Nadella stated, “This deal brings together the world’s leading professional cloud with the world’s leading professional network”. Aiming to increase the boost of sales within its business and email software, this latest merging of these two companies has given Microsoft access to the world's biggest professional social network, with over 430 million members all over the world.
Although this expensive purchase may seem a risk to some, Microsoft seems to have been lucky with their deals in the past, such as Minecraft the video game and PowerPoint which have both done very well. Saying this, it is the largest addition to Microsoft since 2013, with them buying Nokia and Skype a few years ago.
So, what will this mean for the already reliable and usable LinkedIn site? They have already tried to broaden engagement with their users offering them new ways of messaging, a whole new look for their newsfeed and the mobile app. LinkedIn “will retain its distinct brand, culture and independence,” with Jeff Weiner remaining as LinkedIn CEO, the company's said. With their shaky few years after the hacking in 2012 still causing a public upset to this day, and the large number of complaints from users receiving a high number of spam messages from the site, the new takeover will need to make sure a breach of data like this never happens again.
LinkedIn currently allows work professionals to connect, endorse skills and even advertise vacancies - this is where they make their current profit. Microsoft currently only stores data such as contacts and calendars, whereas LinkedIn has much more detailed information for the professional network. When these two aspects are connected, we should see great things start to happen. Another feature Microsoft has to offer into this merger is it’s virtual assistant ‘Cortana’.. Nadella, says “Imagine you’re walking into a meeting and Cortana tells you about the people in that meeting because it has access to that professional network.” This could become advantageous for users in the business sector. The cloud element could also really benefit LinkedIn with all of its contacts and users having a shared space to use. Could Skype also become a main contender in this merger? Skyping connections straight from LinkedIn could also be an option for Microsoft to provide. Overall this coming together will create changes either positively or negatively. Either way this is an incredible opportunity for both Microsoft and LinkedIn.
What do you think of this coming together of two companies? Has Microsoft made a mistake or will it be the making of LinkedIn?