The Impact of the Microsoft & LinkedIn Merger

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The Impact of the Microsoft & LinkedIn Merger

Earlier in June 2016, Microsoft announced that they would be acquiring LinkedIn sometime in 2016 for a huge $26.2 billion. This, as you would expect, led to much debate on how this would impact online businesses, with many feeling that the deal had the potential for businesses to massively expand their potential through social media.

 

So, we have looked into whether this merger is something that you should be taking advantage of, or whether it is a disaster waiting to happen.

 

As you may already know, LinkedIn is one of the big boys in the world of social networks, with more than 433 million worldwide users taking advantage of potential business opportunities, as well as connecting with old friends and colleagues. Also, the fact that LinkedIn is unique in the fact that it is tailor for, and used specifically by professionals, is likely to explain why Microsoft made it their most expensive ever purchase earlier this year.

 

It is clear that the information sourced from LinkedIn is invaluable to businesses, and this is has provided Microsoft with a huge number of opportunities, including seeing them integrate its services, such as Office 365 and Microsoft Dynamics, with LinkedIn. This has enabled its users to share documentation with fellow users that they are connected with, which, in turn, is helping Microsoft achieve a greater presence online.

 

Of course, the main reason why Microsoft acquired LinkedIn was due to its money-making potential, and this is likely to see LinkedIn’s sponsored advertising services being overhauled, whilst new advertising features are likely to be introduced at some point in the near future.

 

Microsoft’s purchase of LinkedIn has put both in a far stronger position going forward, with Microsoft’s services receiving a greater social networking presence and authority, whilst LinkedIn are benefiting from the technological support and tools that Microsoft provides. The true impact of the merger will become far more apparent as time goes by, but it is no coincidence that LinkedIn have just announced that their third quarter revenue – ending September 30th – was $960 million, which is the highest in the company’s history. In fact, it marks a huge increase of 23% when compared to the same period last year.

 

So, the early signs are looking extremely positive for when Microsoft’s acquisition of LinkedIn is finalised later in 2016, and we will keep you posted once this has been announced.

 

Check out the video below to discover what Microsoft CEO Satya Nadella and LinkedIn CEO Jeff Weiner said when discussing Microsoft’s acquisition of LinkedIn

 

 

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