Microsoft Buys LinkedIn for $26 Billion

16th June 2016 by in category IT Support Blog, Microsoft Windows with 0 and 6

Professionals’ social networking site to be integrated with MS Office 365 and Skype

LinkedIn, the professionals’ social networking site has been bought by the Microsoft Corporation for $26.2 billion. The Redmond-based software and cloud computing giant will consider integrating the site with its other online products (for example, MS Office 365 and Skype).

LinkedIn Headquarters Mountain View

The LinkedIn offices in Mountain View, California.

Where the social networking site makes its money is via subscription services. As well as free membership options, LinkedIn Premium offers a wealth of features. Employment agencies and companies can use the social networking site for recruiting new employees. You can also check who viewed your profile, or use the site for customer relationship management.

Another area is Talent Solutions, where businesses can pay x amount of pounds or dollars for branded career listings. Besides being a revenue stream, it also raises the profile of any company wishing to have tailor made targeted job adverts. Pay-per-click marketing is also available through Marketing Solutions.

Microsoft’s acquisition is a step in the right direction. With Skype having been in their product portfolio since 2011, Skype could be used to interview candidates. The power of LinkedIn and Skype could see job interviews conducted in your own home, public library or local recruitment office. Furthermore, their acquisition could see the social networking site’s InMail feature integrated with Office 365.

Of late, LinkedIn has been in limbo. Profits from paid subscriptions have dried up with the last two years being tough. Some critics have said the social networking site would be better off as part of a larger company instead of a standalone business.

The deal’s reaction has been met with surprise, given its recent form. Last year’s figures saw a $166 million loss and a revenue of $3 billion. In spite of this, Microsoft has seen a future for LinkedIn, owing to its fit with cloud computing and data mining-based business models. Their gamble – all $26.2 billion of it – could be a successful one.

About LinkedIn

  • Founded: 2003
  • Location: California
  • Number of users: 436 million
  • Unique visitors per month: 106 million
  • Page views: 45 billion (first quarter, 2016)

Image Credit:

  • LinkedIn headquarters image by LPS.1Own work, CC0,

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