Microsoft just bought LinkedIn in a bombshell deal for an all-cash transaction valued at $26.2 billion inclusive of LinkedIn's net cash. LinkedIn will retain its distinct brand, culture and independence while Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. LinkedIn is the world's largest and most valuable professional network and continues to build a strong and growing business.
Founded in 2002, LinkedIn is the world’s largest professional network on the Internet with more than 433 million members in over 200 countries and territories. It currently offers free as well as paid membership options that allows people to connect with business contacts as well as seek employment. What does Microsoft, a services and devices company, want with a social network whose growth has been somewhat quastionable of late?
"The LinkedIn team has grown a fantastic business centered on connecting the world's professionals," Nadella said. "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." LinkedIn has more than 9,700 full-time employees with offices in 30 cities around the world which are likely going to all be absorbed by Microsoft in the short term.
According to analyst Mark Skilton of Warwick Business School, "LinkedIn has grown a user base of 106 million active users, but compared to 310 million active Twitter users and the mighty 1.65 billion Facebook monthly users, LinkedIn has never managed to grow its commercial services in what could have been a strong enterprise market."
As to how LinkedIn will be able to mesh with Microsoft, it will take time to see how that unfolds.