Software titan Microsoft has spent an astounding $26.2 billion to acquire the world’s largest professional networking site, LinkedIn. Though this is the nth time Microsoft has devoured a lucrative company, this all-cash transaction is their largest acquisition to date. Everyone is wondering why and what will happen next to LinkedIn.
Linkedin’s CEO Jeff Weiner will keep his post but this time, he will have to report to his new boss, Satya Nadella, CEO of Microsoft. Based on a statement issued by Weiner, Linkedin’s independence, culture, and unique brand will change very little post-acquisition.
While LinkedIn is not the most expensive company ever sold in tech acquisition history - it still tops the list of Microsoft’s massive deals. We all thought Skype would be the tech giant’s biggest acquisition when it was sold for $8.5 billion in 2011 but Microsoft beat their own record by acquiring LinkedIn by about three times that amount.
Tech acquisitions are not unique to Microsoft. Google bought YouTube for $1.65 billion in 2006; Facebook got Instagram for $1 billion in 2012; Yahoo acquired Tumblr for $1.1 billion in 2013; and then, Facebook bought WhatsApp in 2014 for a staggering $19 billion.
It seems this acquisition game in Tech is here to stay. What’s next?