Microsoft has disclosed it is acquiring LinkedIn, a business-oriented social networking service for an agreed deal sum of $26.2 billion. Microsoft despite having a history of acquiring five companies that have failed has added LinkedIn to its company A statement issued by the software giant, disclosed that Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft, even as the transaction has been unanimously approved by the Boards of Directors of both LinkedIn and Microsoft.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet,” Nadella said in the statement.
Also commenting on the deal, Jeff Weiner, CEO of LinkedIn said the combination of Microsoft’s cloud and LinkedIn’s network, will give LinkedIn the chance to change the way the world works. “For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story,” Weiner added. Meanwhile, industry watchers, including the media are concerned due to Microsoft’s past acquisition of companies that went bad.
According to ETTelecom, the five buys of Microsoft that went bad include: Nokia Microsoft bought Finish company Nokia for a massive $7 billion when Nokia had almost lost their entire market hold to Apple, Samsung and slew of other Android device makers. The new team under Microsoft were not able to turn Nokia’s ailing fortunes around; Danger Microsoft acquired Danger in 2008; a company known for its expertise in software and services for mobile computing devices. But tragedy hit Danger, when a major shutdown in one of their data centres resulted in key business loss. But what really dealt the blow to Danger was the creation of Microsoft KIN, a product which was the outcome of Microsoft and Danger’s collaboration. The device met with some critically bad reviews and was taken off the market, after just 48 days; Tellme Networks was acquired by Microsoft for around $800 million, but it turned out to be a just another irrelevant acquisition with the rise of mobility based devices and search engines.
Others include: aQuantive Microsoft wanted to compete with Google, so it dug its hand deep in the wealthy cash pile and bought aQuantive, an online advertising company for $6.3 billion. But in July 2012, Microsoft wrote off the entire value of the $6.2 acquisition; and Navision In order to strengthen its business management software suite, Microsoft acquired Navision, which had a greater hold of the European markets in 2001 for $1.45 billion and bundled it with Great Plains Software into Microsoft Dynamics. But Microsoft ultimately failed in the CRM market against the likes of SAP, Salesforce and Oracle.