Microsoft announced that it would be acquiring business and employee hub LinkedIn for $26.2 billion. There was a lot of head scratching as to why exactly, but Microsoft CEO Satya Nadella recently answered that question in a memo.
The memo starts with Nadella stating that he paid close attention to LinkedIn and its growth while trying to see how Microsoft’s cloud services can fit in with what the social network for professionals is doing.
“This deal brings together the world’s leading professional cloud with the world’s leading professional network,” Nadella began. “I have been learning about LinkedIn for some time while also reflecting on how networks can truly differentiate cloud services. It’s clear to me that the LinkedIn team has grown a fantastic business and an impressive network of more than 433 million professionals.”
As the memo continues he points out the acquisition of LinkedIn is the largest for the company since he took the wheel and his process in deciding whether or not to go through with an acquisition. Nadella said LinkedIn was a worthwhile acquisition because of the potential of offering new experiences, trying new stuff specific to the platform, and increasing the platform’s growth.
As for what Microsoft gets out of this, since it’s a site geared towards professionals of various skill sets there is a huge chance for Office 365 and Dynamics to be a major focus of the platform.
Wrapping things up was Nadella explaining how the two sides would communicate. He said LinkedIn would remain independent of Microsoft and continue to work as it always has and the upper tier of the platform will remain in place. The main thing will be Microsoft and LinkedIn working on specific projects and working together on integrating them and CEO Jeff Weiner reporting to Nadella on LinkedIn’s performance and what can be improved or attempted.