The European Commission has approved the merger of Microsoft and LinkedIn. The acquisition is part of Microsoft Chief Executive Satya Nadella's efforts to revitalize the company. The acquisition amount is valued at $26.2 billion in what is considered as the largest in its history.
According to Mr. Nadella, he is hoping that the merger will benefit both companies. It is his aspirations that the new deal will open up new horizons for both Microsoft and LinkedIn. In a recent interview, Mr. Nadella said that the merger brings together the professional cloud and the professional network. He cites an instance when directly connecting Office to LinkedIn could help attendees of meetings get to know more about one another.
Microsoft was attracted to the opportunity that Lynda.com presents when it comes to training videos. LinkedIn recently acquired Lynda.com for $1.5 billion last year. With the channel, Microsoft will be able to integrate training videos into its own software, particularly Excel. For LinkedIn, on the other hand, the company is hoping that the merger will renew its decelerating growth. It also marks the exit of shareholders after stocks tumbled from a high of $269 to $101.11 last February 2015.
Under the terms of the merger, Microsoft will pay $196 per LinkedIn share. LinkedIn Chief Executive Jeff Weiner will maintain his current position when the deal closes, expected to happen before the end of the year.
Business leaders are looking forward to benefit from the acquisition. Tech companies are looking for ways they can benefit from social media. One of the company that is looking to benefit from the deal is Avnet, Inc., an electronics supplier that uses Microsoft products including Office 365.
The latest deal topped other acquisitions by Microsoft. Next to LinkedIn, the purchase of the Nokia handset business resulted to Microsoft taking charges that surpassed the $9.4 billion price. The deal was initiated by former Microsoft Chief Executive Steve Ballmer.