The acquisition of LinkedIn by Microsoft

Résumé du document

The negotiation chosen is the one surrounding the acquisition of LinkedIn by Microsoft. The acquisition of LinkedIn by Microsoft is the result of a USD 26.2 billion merger operation which resulted in the acquisition of all the data but also all the human resources of LinkedIn by Microsoft.

Extraits

[...] In fact, the Co-founder of LinkedIn, Reid Hoffman turn out to be an important opinion maker on the Silicon Valley. By merging with LinkedIn, the company ensured his cooperation in an attempt to make his presence and influence within the community profitable for Microsoft especially by giving Microsoft more credit when dealing with innovation. How Organisation Do's Include all LinkedIn HR on the development process in order to develop the synergies between Preserve Linkedin's culture in order to maintain its energy and image within the software community but also its efficiency for professional customers. [...]

[...] Don'ts Integrate LinkedIn as another Microsoft service. This could lead the company to lose its positive image and to destroy its disruptive capacity by being pulled into Microsoft company's culture deficit when dealing with innovation For Microsoft products to become too Likedin centric and to appear as a format developed not for customers but for Linekdin development and data collection purposes. [...]

[...] Its integration with Microsoft defines even more LinkedIn as a market maker and allows the company to gain in terms of market power Solutions at the table Microsoft's interests Possible options Linkedin's interests Gain access to Linkedin's data base Enjoy the proximity with LinkedIn in terms of image Gain control over LinkedIn HR Use this merger to develop new aspects of its business model Cooperation Merger SPV for cooperation Gain access to Microsoft financial power Wealth operation for shareholders Gain access to Microsoft client customers especially by integrating LinkedIn in Windows Develop its market power and transform its pioneer advantage Solutions away from the table For Microsoft Possible alternatives Pros Cons Staying in a situation that damages its image especially in terms of capacity to recruit highly qualified HR Develop its own professional based competition to LinkedIn Independence of the process Liquidity of the company Long term investment with high risks Long term benefits when short terms effects are required Potential failure in terms of image that would qualify Microsoft as "loser" or "old fashioned" company For LinkedIn Possible alternatives Pros Cons Staying as a standalone company Merger or cooperation with another large software company (Apple?) Maintaining independence and a strong dynamic image Possibility to gain in terms of modern image by cooperating with Apple Cooperation would allow access to new financial resources. Standalone capacity to increase its customer database Offers potential competitors an opportunity to rise by making a deal with Microsoft Financial resources are more limited as standalone company Who: Interpersonal relationships between LinkedIn and Microsoft The interpersonal relationships are one of the most important elements that explain the merger between those companies. [...]

[...] Acquisition of LinkedIn by Microsoft The negotiation chosen is the one surrounding the acquisition of LinkedIn by Microsoft. The acquisition of LinkedIn by Microsoft is the result of a USD 26.2 billion merger operation which resulted in the acquisition of all the data but also all the human resources of LinkedIn by Microsoft. The amount is to be considered as surprising and makes the financial markets expect strong synergies between LinkedIn business model and the large and well established Microsoft software and OS. [...]