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Microsoft buys LinkedIn: a decision driven by Satya Nadella

06/16/2016 11:20
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The company from Redmond wishes to maximize Office 365 by acquiring the professional contacts platform with 433 million registered users. 


On Monday Microsoft announced that it had acquired LinkedIn for 26.2 billion dollars , i.e. 196 dollars per share. This announcement follows the stock market crash (more than 43%) suffered by LinkendIn a few months ago. In February its shares in Wall Street dropped to 108.38 dollars.

Four months after that terrible day, the company from Redmond has announced the acquisition of LinkedIn. This decision has been encouraged by Satya Nadella, CEO of Microsoft since 2014, who seems to want to capitalize on LinkedIn's poor results to bolster its offerings. LinkedIn closed 2015 with 2.99 billion dollars in revenue albeit it registered 164 million dollars in losses, ten times more than in 2014.

Satya Nadella sent an email to his employees explaining the decision. "Along with the new growth in our Office 365, LinkedIn is key to our bold ambition to reinvent productivity and business processes," says Nadella. "Over the past decade we have moved Office from a set of productivity tools to a cloud service across any platform and device. This deal is the next step forward for Office 365. "We can reinvent ways to make professionals more productive while at the same time reinventing selling, marketing and talent management business processes."  

The successor of Steve Ballmer says: "It requires a vibrant network that brings together a professional's information in LinkedIn’s public network with the information in Office 365. This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you’re trying to complete."

LinkedIn was created in 2003 and now has 433 million members.