LinkedIn Purchased By Microsoft

Big Fish Continue To Swallowed By Bigger Fish

 On June 13 this year Microsoft announced that it was buying the world's per-eminent professional networking site LinkedIn for a massive US$26.2 Billion. This extraordinary move occurring just five years after LinkedIn itself went public back in May 2011 and more than doubled its share price on the first day of trading.
 
 

 

 

 

 

 

 

Microsoft  Realigned To Business

This acquisition is certainly  consistent with the direction that Microsoft CEO Satya Nadella is taking the company as it continues to position itself as providing value for businesses with existing products such as Microsoft Dynamics (CRM), Microsoft Office (Office Programs), Skype (V.O.I.P) and Nokia (Mobile Manufacturer). And now LinkedIn which is again totally positioned as the most recognisable and  frequented site of its type globally.

 

Over 430 Million Users

Currently estimates have LinkedIn users at over the  430 Million mark and this infusion of names will be perfectly aligned to the ongoing positioning and tactical program development that Microsoft has been pursuing in recent years.

 Time Will Tell

The synergy between Microsoft and LinkedIn is obvious and may in time present a great boon for both companies given the complimentary nature of their respective core competencies and certainly with half its share price having lost half its value in a two week period in February this year due to poorer than expected revenue generation, this is a good time for Microsoft to take this sizable risk.

 Needs Based Solutions

But potential is one thing and results another. Microsoft has already written off the more than $7.6 Billion dollars for Nokia a year later and little change and innovation has occurred with Skype since it was acquired. For this to work Microsoft will need to better understand the customer business need here and develop more precise needs based tools that by definition will provide better fit, differentiation and ultimately value.

Additional Training Resources

Naturally to learn more about any aspect of Social or Digital Media marketing click on to this link:
http://www.victorianchamber.com.au/business-solutions/training/course

So until next time, good luck and good marketing.
Regards,
Daniele.