What makes sense in the Microsoft – LinkedIn deal?

Microsoft buys LinkedIn
Microsoft acquires LinkedIn in a $26.1 b deal

Microsoft Buys LinkedIn – The world’s largest professional Network

On late June-14-2016, the news of Microsoft buying LinkedIn for a whopping $21.6 billion came to limelight. It has always been a trend for top billion dollar companies to acquire smaller organizations and startups. But in the case of Microsoft – LinkedIn deal, it has not been mainstream. Well, we can compare this to Facebook acquiring WhatsApp a few years ago. While facebook had a strong spinal reason to acquire Whatsapp that made a huge threat to the facebook native messenger application, it was a sensible decision. Let us revisit the case of Microsoft buys LinkedIn.

So, why does a Billion dollar company like Microsoft think to buy another billion dollar company in the market? How is the acquisition going to help both the companies and its users? Was it a good bet?

Well, to answer the above questions, we might want to think the truly professional way. Microsoft under Sathya Nadella had always concentrated on the Enterprise market. The products of Microsoft that makes the major revenue share are Office 365, Windows Enterprise edition. Well, if you think of Bing, hardly people use Bing and it’s competitor Google has taken a huge market share. Few months before the release of Windows 10 for mobiles, Sathya Nadella had made it clear that the high-end phones are to represent the enterprise edition.

So, How is it a fair deal on Microsoft buys LinkedIn?

Microsoft Buys LinkedIn takenmind
Microsoft under Nadella acquires LinkedIn Professional Network

1. Fulfilling the dream of conquering the Enterprise Network:

Clearly, Microsoft wants to dominate the Enterprise market. Enterprise is real money for Microsoft. Recently, Microsoft shifted it plans to Cloud and office, apart from its major product aka Windows. Microsoft had made huge plans previously to capture the Enterprise market with Universal Windows platform, Skype for Business, Surface Pro, Sunrise calendar acquisition, Office 365 and Office Live. While Microsoft offers the pack of enterprise services, it also wants to know the right network to showcase and implement the product.Thus, the LinkedIn acquisition would greatly help Microsoft fulfill its dream on the Enterprise Network.

2. Grabbing Insights of customer’s reaction towards Microsoft products:

Unlike Google and Facebook, Microsoft lacks a network chain that helps MS evaluate the insight or reaction of consumers towards their products. LinkedIn hopefully would seal this void and hence would directly help Microsoft learn more from customers. It’s popular with Microsoft saying ‘We are Listening’.

Earlier, when windows were tested by windows insider, MS would have found it a bit difficult to get the feedback from several insiders. Despite the feedback from several million active windows insiders, it had always been a tough play to get the rest. In future, Microsoft won’t face trouble reaching people when they have the world’s professional network under their parent.

3. Pulling out competitors from the crowd:

Having LinkedIn under their belt, Microsoft now has the biggest Enterprise network. If someone brings in a new enterprise product that can rival Microsoft, even before it becomes a success Microsoft will know about it. Because now they control how the enterprise socializes. Microsoft can now target specific users and understand the pulse of Enterprise even before anyone else.

Bottom line:

If everything goes as planned by Microsoft, then the acquisition is a well-played risk. It all depends on the action of Microsoft towards LinkedIn that can make or break the huge monopoly game of the Internet giants. Microsoft buys LinkedIn. Fingers crossed, let us not underestimate the future of the Tech giants.

The future:

Microsoft had announced that after the complete acquisition, LinkedIn would function completely as an independent platform headed by Jeff Weiner – CEO of LinkedIn. Jeff would be reporting to Nadella after this deal. So, what do you think about the Microsoft – LinkedIn deal? Blow up in the comment section below.

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