Thursday, September 29, 2016

LinkedIn-Microsoft: 5 Key Points in $26.2bn Deal

LinkedIn-Microsoft: 5 Key Points in $26.2bn Deal

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LinkedIn-Microsoft is the new talk of the town as the networking site has recently struck a deal with technology titan Microsoft for $26.2 billion (AU $ 35.4 billion). LinkedIn is a networking site for white-collar workers, and it is an all-cash deal.

Here is a list of 5 key points regarding the LinkedIn-Microsoft deal.

The Finance Structure

According to Economic Times, it is a definitive agreement through which Microsoft will take over LinkedIn for $26.2 billion (AU$ 35.4 billion).

It has also been reported by the companies that the deal is an all-cash transaction at $196 (AU$ 265) per share. There will be a premium of 49.5 percent from Friday’s close.

Microsoft will put money on the deal chiefly through the issuance of new debt.

The Key Players

This transaction is being considered as the biggest deal under Satya Nadella’s tenure as CEO of Microsoft. Nadella is the person responsible for increasing Microsoft’s appeal. He has been trying to attract more business customers by giving them cloud-based services and productivity tools.

According to CNet, Microsoft is having Morgan Stanley, who will be acting as exclusive financial advisor. It has also been reported that Qatalyst Partners and Allen & Company LLC are playing the role of financial advisors to LinkedIn. Jeff Weiner will keep on working as CEO of LinkedIn, while he will be reporting to Nadella.

To Change the World

The LinkedIn-Microsoft relationship is the amalgamation of Microsoft’s cloud and LinkedIn’s network. Weiner believes that this would now give them a chance to change the way the world works.

“This combination will make it possible for new experiences such as a LinkedIn newsfeed that serve up articles based on the project you are working on.” Nadella said.

He also said that Office would suggest an expert to connect with via LinkedIn to help with a task one is trying to finish.

What’s Not Changing

According to Financial Times, LinkedIn will hold on to its unique brand. A joint statement said on Monday that the networking site will retain its culture and independence.

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Final Words

Microsoft had made an entrance earlier, with the objective to buy LinkedIn several times. This was just before LinkedIn’s 2011 public listing.

ALSO READ: LinkedIn Data Breach: Hackers Steal 100 Million Profiles

This terrific deal is expected to close this calendar year. It has been given unanimous approval from both LinkedIn and Microsoft’s board.