Question is, will Microsoft gain or lose from its acquisition of LinkedIn?

by Md. Fahim Alam

For Microsoft, big acquisitions have not proved to be very fruitful in the past. It has a long history of unsuccessful purchases that led to massive write-downs, sometimes more than what they actually paid to acquire. Before the recent purchase of LinkedIn, which has many people doubting Microsoft CEO, Satya Nadella’s bigger plan, Microsoft decided to take a bite out of Nokia for $7.5 billion. People wondered if they would witness a revolutionary change in the world of smartphones again but much to the Giants’ disappointment, they did not.

The recent $26.2 billion dollar acquisition of LinkedIn by Microsoft has the industry abuzz. Critics have already questioned this move and are already pretty certain this again is a bad move for the tech giant but some have spoken positively, stating Nadella has not wasted his money.

The problem is this – underestimating the real value of LinkedIn. While some think it’s just any other ‘professional networking’ site that hasn’t taken off like Facebook, others think it’s a brilliant tool for those looking for opportunities in the professional world. LinkedIn and Microsoft together will mean people will have more tools on one platform. Connecting and selling will become easier with LinkedIn giving notifications on interests, similar backgrounds, and common connections before meetings. While many will say people already had access to these functionalities, now Dynamics CRM and Sales Navigator can work seamlessly together, providing rich data that is crucial to anyone in sales.

So let’s give Nadella a break. Just because Microsoft hasn’t made the right choices in the past doesn’t mean they’re always doomed for failure in the future. What do you think?

Will Microsoft gain or lose from its acquisition of LinkedIn?

1. Gain

2. Lose