Why Microsoft $ 26 billion for LinkedIn outputs – SPIEGEL ONLINE

It is an unexpected and spectacular purchase: The software giant Microsoft accepts the career network LinkedIn for $ 26.2 billion (around 23.3 billion euros); the first major deal of 2014 is beaten Microsoft chief Satya Nadella – he should do so Microsoft for its clientele even more attractive

The acquisition is so expensive that Nadellas future is likely to be now linked to the success of the deal.. His predecessor Steve Ballmer, Microsoft introduced more than a decade, is now placed the unsuccessful end acquisition of the mobile phone division of Nokia for more than nine billion dollars to the load.

LinkedIn, the much larger competitors of the German portal Xing, has internationally more than 430 million customers. And is also active in the market for e-learning since last year. When he announced the acquisition, Nadella pointed explicitly to the new LinkedIn app out and on the e-learning portal Lynda, who had taken over the network a few months ago for 1.2 billion dollars.

For LinkedIn users will be able to introduce their own profiles in their professional environment, look for new jobs out and communicate with other members. The network delivers business messages to his community and also has a special tool for Headhunter developed, with which they can search for suitable candidates for vacant positions in the millions of contacts.

The company combines the same mission

And LinkedIn is growing. In the first quarter of 2016, the global number of users rose from 414 to 433 million. Per month were active 105 500 000 of them. These are all good reasons to get together with Linkedin for Nadella. “This deal brings the largest professional cloud the leading career network in the world together,” Nadella exulted in a downright euphoric letter to his employees.

A merger implies not only an expansion of the market, Microsoft already Operating the, so Nadella. The two companies also connects the same mission: namely their users in their professional development new opportunities to give the hand

After Office 365 in recent years of a tool collection available to an across multiple devices. cloud service have changed, the Linkedin takeover is now the next step – namely the connection to the largest and most valuable career network in the world, Nadella wrote.

The Microsoft boss anyway sees through the deal already lots of new business opportunities -. Of the increase in productivity of users on new recruitment opportunities to talent management, from marketing to sales

Although it is obviously a close link between the services of both companies being considered, as a brand and operationally to LinkedIn accordingly but once remain independent. Even CEO Jeff Weiner should remain and report directly to Nadella.

Nadella and Weiner said the financial agency Bloomberg, on the deal was in January since been spoken. The breakthrough was achieved when Nadella LinkedIn have promised much independence in the Microsoft network. However, it should not take long, stand up first links, as was the case even after Microsoft’s acquisition of social business network Yammer.

At the shareholders LinkedIn came the deal very well. The shares have risen by 48 per cent after the announcement of the message. The Microsoft was given the expensive purchase of additional shares by nearly 4 percent. contrast, industry observers expressed understanding for the high purchase price. “LinkedIn is an excellent company and deserves a premium valuation,” said one analyst. Last year, the company’s stock still cost more than 270 dollars.

And even with the shareholders of 10 million users significantly smaller German career network Xing broke the deal apparently hopes from. The share of Xing rose more than 8 percent. The the long languish short messages diene Marketers Twitter even increased by more than 6 percent. Apparently adds the fact that the purchase of communities such as in the sports industry in vogue is just, even stock prices wings.