June 13th, 2016 added a new chapter in the history of Mergers & Acquisitions as Microsoft signed a final agreement and purchased the world’s biggest professional networking site – LinkedIn valued $26.2 billion, which is $196 per share in an all-cash transaction.
The news has broken the internet, and everyone is talking about LinkedIn’s acquisition by Microsoft.
CareerBuilder brings you insights on LinkedIn & Microsoft collaboration answering some important questions – Why and What matters?
Why Jeff Weiner sold LinkedIn to Microsoft?
Recently, time.com published a letter which LinkedIn CEO, Jeff Weiner shared with his employees explaining why he sell the company to Microsoft.
Weiner mentions, the leadership style of Satya Nadella (Microsoft CEO) is the driving factor. He wrote, “It was the latter point that first had me thinking we could make this work, but it was his thoughts on how we would do it that got me genuinely excited about the prospect”.
He also added, “Microsoft progressed under the guidance of Satya Nadella as his leadership style is more purpose-driven, agile and innovative”.
Read the full letter below, Jeff Weiner, which the CEO posted on LinkedIn:
December 15th, 2008, marked the first day of the best job I’ve ever had. My rationale for joining LinkedIn was simple: The opportunity to work with Reid Hoffman, a founder I greatly admired and respected; to accede an incredibly talented and dedicated team; and to massively scale LinkedIn’s membership and business, both of which had the potential to transform fundamentally the way the world connects to opportunity. Never in my wildest dreams, could I have imagined what would happen in the next 7½ years. Our team has grown from 338 people to over 10,000, our membership from 32M to over 433M and our revenue from $78M to over $3 billion…. Read More.
HR Talk – What is next?
The primary objective of Nadella is to reinvent the business processes and productivity.
A few months back, Nadella emailed his 118,000 global employees to outline his vision for what Microsoft would develop in his leadership.
He mentioned, Microsoft would invest in three interconnected goals, in which the second and third goals on his list were to create more intelligent cloud platform, and build more personal computing.
Now, the acquisition of LinkedIn strikes at the heart of this goal.
HR Technology – The next chapter begins
For small and medium-sized businesses Microsoft Dynamics delivers a host of brilliant cloud-based tools. It is equipped with Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and it spans across most lines and verticals of business.
Regrettably, their Dynamic Suite lacks in human resource management component. It implies Microsoft has been on the sidelines of a company that produce more than four billion dollars in software market single-handedly.
Meanwhile, LinkedIn in past five years acquired the following HR-dedicated organisations – Connectifier, Careerify and Lynda.com. And, it has done an outstanding job beefing up its enterprise training software, recruiting and HR tools, all in anticipations of turning itself into most desired platform for job seekers and recruiters globally.
What is the catch
Now, with the acquisition of LinkedIn, Dynamic Suite coupled with these tools, can support the Microsoft making it a winning player in human resource management platform on the market.
Moreover, it will leverage the Microsoft users with one ubiquitous platform that oversees an entire lifecycle of an employee with the company. The tool empowers you to recruit, track and communicate with candidates, train them once they come on board, link their performance data into the CRM tool, and monitor how this particular employee influence your business.
A Promising Future Awaits
According to the industry speculators, the acquisition of LinkedIn by Microsoft presented the win-win scenario for both the companies- where Microsoft will lead in Human Capital Management market, simultaneously LinkedIn take the benefit of Microsoft’s evolved cloud technology for better user experience.