Last week we heard the news that Microsoft is planning to buy LinkedIn for £18bn, a deal which will be one of the biggest in the technology world.
Since becoming Microsoft’s Chief Executive Officer, this is Satya Nadella’s first main deal and it’s an exciting move for both businesses. For LinkedIn, shares soared by 47% when the deal was announced as Microsoft will help to expand their network. LinkedIn wants to offer users more messaging options and a newsfeed to boost engagement, so Microsoft will help to make these features a reality.
It is also beneficial for Microsoft as they see it as an opportunity to continue their ambition of reinventing productivity and business processes. In a letter to Microsoft employees, Nadella explained that the companies would be integrated as Office could suggest LinkedIn connections and LinkedIn might show projects that are relevant to what the user is working on. He sees that the professional information in LinkedIn could work in harmony with the information found in Office 365. Nadella then believes that both companies will see a growth in engagement, with LinkedIn experiencing an accelerated growth.
At Spindogs we actively use LinkedIn every day to help our clients reach their target audiences, so I spoke to our Direct and Digital Marketing Director to find out his thoughts on the deal:
“I think that this acquisition raises more questions than it answers, but ultimately it does show the value of data. Microsoft have bought access to over 430 million users and so they will be able to find out their interests, employment situations and much more. As with Facebook, the value isn’t in sharing cat pictures with your friends, it’s in Facebook knowing that you like cats and passing that information onto people that can market cat products to you. The face of LinkedIn and Facebook is a social network, but the value is a marketing tool and an incredibly insightful CRM.”
5 Questions to ask about the Microsoft and LinkedIn deal:
- Does this mean that there will be more ads on LinkedIn and how will this affect its users?
- What will happen to SlideShare and will it be integrated into the Microsoft family?
- Will Microsoft’s products become interspersed within LinkedIn?
- Has Microsoft overpaid for LinkedIn as the share value was decreasing before this deal?
- Will LinkedIn’s brand and values remain intact once Microsoft takes over?
The answers to these questions might be currently unknown, but watch this space as Microsoft’s plans will soon become clear. We will certainly be keeping a watchful eye on LinkedIn to see how it becomes connected with Microsoft.
What is your opinion on Microsoft buying LinkedIn? We would love to hear your thoughts on Twitter, so please tweet us @Spindogs!