Microsoft Acquires LinkedIn For $26 Billion; Puts Pressure On Google To Respond


Microsoft Corp. has successfully purchased LinkedIn Corp. for $26.2 billion on Monday, which makes it the largest deal for the company has made to date.

Microsoft had stated that LinkedIn, and its employees would remain operational as is. The tech giant aims to retain LinkedIn's brand, and its services, according to the Microsoft news website.

The tech company had completed an all-cash transaction at a total cost of $26.2 billion at $126 per share. Jeff Weiner would remain at his post as LinkedIn's CEO, whom of which will now report to Satya Nadella, Microsoft CEO.

Weiner, along with LinkedIn co-founder Reid Hoffman, express their support of the acquisition.

The major acquisition would result in Microsoft gaining an immediate asset increase with LinkedIn's members estimated at 400 million strong. This puts the pressure on Google to make a strategic response, TIME reported.

With Microsoft increasing its reach, Google has a problem at hand with competing for their target market. Google have stated that it aims to focus on cloud apps among the mid-market sector.

Microsoft had apparently made the first move to dominate the market for apps intended for businesses, which Google clearly has its sights on.

Weiner revealed that both companies look into integrating Microsoft influence in technology, along with LinkedIn's services. Some analysts predict that Microsoft will develop Skype into LinkedIn's interface, for example.

LinkedIn's valuable database is now open to be integrated to Microsoft vast collection of services, such as Outlook, Calendar, Office, and Windows.

In addition, Microsoft had stated that LinkedIn would assist in the development of Cortana, which is the tech company's AI personal assistant.

Currently, Google's AI is considered to be at the top of the industry, but with Microsoft's acquisition of LinkedIn, along with its database, Microsoft may have gained an advantage over the Google, Recode reported.

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