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Nadella in a memo to personnel designated the reasons for the deal.
it’s the largest acquisition with the aid of Microsoft considering that he have become CEO.
LinkedIn will hold its independence, the corporations introduced.
while Monday changed into set to be a big day for tech news, what with the keynote cope with of Apple’sworldwide developers convention (WWDC) because of see some major announcements, Microsoft has stolen the show even before it started. The Redmond massive on Monday announced without problemsone in every of the biggest tech acquisitions of the past decade, both in terms of financial and industryimportance.
Microsoft on Monday announced it had entered into an agreement to shop for professional networkLinkedIn for $26.2 billion in an all-cash deal. The deal is expected to be finalised by yr–stop.
The joint announcement saying the plans for the purchase revealed that LinkedIn CEO Jeff Weiner willkeep his job, but document to Microsoft CEO Satya Nadella, while the expert social network will hold its “brand, culture, and independence.”
Explaining the move in greater detail, Nadella’s internal memo to Microsoft personnel become publishedwith the aid of the agency, and you could examine it in its entirety below.
group,
i’m excited to share that today Microsoft introduced a deal to gather LinkedIn. you may see how Jeff Weiner, the CEO of LinkedIn, and that i envision the possibility beforehand in this public presentation.
This deal brings together the sector‘s main expert cloud with the world‘s leading expert network. i’vebeen gaining knowledge of about LinkedIn for a while whilst also reflecting on how networks can simplydifferentiate cloud offerings. it is clean to me that the LinkedIn team has grown a fantastic commercial enterprise and an outstanding community of extra than 433 million specialists.
Given this is the largest acquisition for Microsoft due to the fact that I became CEO, I wanted toproportion with you ways I think about acquisitions average. to start, I bear in mind if an asset willextend our possibility – mainly, does it amplify our overall addressable marketplace? is that this assetusing secular utilization and era trends? And does this asset align with our core commercial enterpriseand overall experience of motive?
the solution to all of those questions with LinkedIn is squarely sure. we’re in pursuit of a commonplaceassignment targeted on empowering people and organizations. along side the new growth in ourworkplace 365 industrial and Dynamics companies this deal is fundamental to our bold ambition to reinvent productiveness and commercial enterprise procedures. consider it: How human beingsdiscover jobs, construct competencies, sell, market and get paintings done and ultimately findachievement calls for a connected professional global. It requires a colourful network that bringscollectively a expert‘s information in LinkedIn’s public network with the data in office 365 and Dynamics. This aggregate will make it viable for brand spanking new experiences which include a LinkedIn newsfeed that serves up articles based on the mission you are running on and office suggesting anprofessional to connect with via LinkedIn to help with a task you’re attempting to complete. As thosereviews get greater clever and delightful, the LinkedIn and office 365 engagement will grow. And in turn, new opportunities may be created for monetization via character and organization subscriptions andtargeted advertising.
Jeff and i both accept as true with we’ve a extensive possibility to accelerate LinkedIn’s increase and the price it brings to its participants with Microsoft’s assets and scale. In truth, while Reid Hoffman, thefounding father of LinkedIn, and that i spoke approximately the possibility for us to come collectively, he known as it a “re-founding” moment for LinkedIn and an opportunity to attain the challenge theemployer set out on thirteen years ago.
The opportunity for office 365 and Dynamics is simply as profound. over the past decade we have movedoffice from a fixed of productiveness equipment to a cloud service throughout any platform and device. This deal is the subsequent leap forward for office 365 and Dynamics as they hook up with the sector‘sbiggest and most precious expert community. In essence, we will reinvent ways to make specialistsgreater efficient whilst at the equal time reinventing promoting, marketing and talent control businesstactics. I can’t wait to see what our groups dream up while we are able to start running collectively as soon as the deal closes, which we anticipate will occur this calendar 12 months.
A huge part of this deal is accelerating LinkedIn’s increase. To that give up, LinkedIn will maintain itswonderful brand and independence, as well as their way of life which is very an awful lot aligned with ours. Jeff will stay CEO of LinkedIn, he’s going to report to me and be part of our senior leadershipgroup. In essence, what i have asked Jeff to do is manage LinkedIn with key performance metrics that accrue to our standard success. he’s going to determine from there what makes feel to combine and what does no longer. We know that near term there can be no modifications in who reviews to whom so no reporting relationships at Microsoft will trade in that regard. This method is designed to preserve the LinkedIn crew centered on using outcomes even as concurrently partnering on product integration plans with the office 365 and Dynamics groups. throughout the mixing, we will pick out key projects in whichwe will go deep together as a way to ultimately bring about new reviews for clients. Kurt DelBene will lead the overall integration efforts at Microsoft in close partnership with Qi Lu and Scott Guthrie.
i’m at the LinkedIn campus today in California and could host a name for investors at 8:forty five a.m. PT with Jeff, Brad and Amy – please be a part of if you may. Following that, i’ll then spend the day meetingwith the LinkedIn group. the next day, i will host a unique Microsoft employee Q&A – i am hoping you could make it.
so far, what i have discovered approximately the LinkedIn crew is how a whole lot our culturespercentage a number of the same attributes. We both care deeply approximately character and collectiveincrease, and find deep that means in the work we do to make a difference in our world. together we’re going to do just that.
even as i’m in northern California sharing our imaginative and prescient to empower specialists, the Xboxgroup is in southern California at E3 sharing our imaginative and prescient to empower game enthusiasts. I inspire you to check out the E3 press briefing, which begins at 9:30 a.m. Pacific Time.
sooner or later, if you‘re no longer on LinkedIn, be a part of up now and begin using and gaining knowledge of extra.
Satya.
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Tags: Acquisitions, Buyout, net, LinkedIn, Microsoft, expert network, Satya Nadella, Social