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LinkedIn shares up 47% on Microsoft $26B bid
In a match made for the cloud, software giant Microsoft is acquiring professional social networking site LinkedIn for $26.2 billion in cash. By teaming up, the companies aim to connect Microsofts more than 1.2 billion users of Office — and its other cloud-based offerings — with LinkedIns 433 million-plus mobile-friendly members, in ways that transform the workplace. LinkedIn’s news feed will be smarter, since your Office calendar will know what’s coming up on your schedule, said Microsoft CEO Satya Nadella. And the Office software suite will have LinkedIn’s training courses on programs such as Excel, Word and PowerPoint baked in, he said. In a more futuristic vision, Nadella foresees Microsoft’s artificial intelligence assistant Cortana serving as your networking caddy. “Imagine you are walking into a meeting and Cortana now wakes up and tells you about the people you are meeting for the first time … (and) tells you all the things you want to know before walking in and knowing someone because it has access to the professional network,” he said. Microsoft likely sees the potential of connecting its Office Graph intelligent workplace collaborative platform with LinkedIn’s network, says TJ Kiett, a senior analyst with research firm Forrester. “This is a data play in many respects. In the enterprise market, Microsoft wants to create a new platform for work that makes it easier for employees to collaborate and get things done,” he said. “LinkedIn, with its profiles, groups and connections, is ideal.” The acquisition of LinkedIn would be Microsoft’s largest ever; the deal values LinkedIn at $196 per share, representing a 49.5% premium over Friday’s closing price.