Monday, June 13, 2016

After the acquisition by Microsoft LinkedIn may lose important partners, but is gaining user base – wirtualnemedia.pl

On Monday given information about the acquisition of the 26.2 billion dollars. LinkedIn by the company Microsoft. Following the disclosure of details of the acquisition have raised questions about what motives and benefits for both partners stand behind this transaction.

LinkedIn: we will be independent

For some of these questions tried to answer Jeff Weiner, CEO of LinkedIn in the mail addressed to employees. He explained in, among others, reasons and benefits of joining forces service and Microsoft.

– When Satya Nadella (CEO of Microsoft – ed. ed.) was first proposed buying LinkedIn was absolutely convinced that our two companies have at least two common elements: the purpose and structure – says Jeff Weiner. – It quickly became clear that we have a similar mission. For LinkedIn is to connect people around the world in order to become more productive and achieve professional success. The purpose of Microsoft is in turn supporting the people in it, so they can achieve their goals and meet the challenges. In fact, our two companies are trying to get to the same point, but from different directions – says Weiner.

The rest of your e-mail head LinkedIn lists the consequences of merger and the benefits to result from it. Among them they are the ability to integrate solutions implemented on LinkedIn with products such as Microsoft Windows, Office and Outlook, the combination into a single system platform educational Lynda.com Office or the ability to reach customers LinkedIn to the large user base of products offered by Microsoft.

– Satya Nadella assured that LinkedIn will have full independence in the most important aspects of our company – Weiner wrote. – We will continue to operate under its own brand within the ecosystem of Microsoft, as is happening in the market in the event of such companies as YouTube, Instagram and WhatsApp – he said.

The transaction will benefit mainly Microsoft

in an interview with Michael Kreczmar Wirtualnemedia.pl service, e-commerce director in Hypermedia Isobar linked to definitely demarcates losses that can be experienced as a result of this acquisition, LinkedIn and the potential benefits of waiting to Microsoft.

– the first question is, now what do all companies to advertise on LinkedIn. What I would do if I were a competitor of Microsoft and was present on LinkedIn? I’d probably run away – speaks openly Michael Kreczmar. – You have to remember that the database service is a lot of valuable knowledge concerning eg. Organizational structures, recruitment policy and other important information on many companies. So I do not be surprised if it turned out that LinkedIn takes just massive clearing business accounts. LinkedIn for many entities accounted for both facilities recruitment and sales – though let’s look at the model of lead generation based on Slideshare. At the time of acquisition by Microsoft LinkedIn it becomes so virtually unusable for a huge part of the market. This in turn blocks LinkedIn possibility of development in cooperation with business interests competing for Microsoft – announced Kreczmar.

On the other hand, it shows the benefits of the acquisition of LinkedIn will concern developed by Bill Gates. – For Microsoft’s acquisition of LinkedIn is an interesting output, because the MS thanks to him gain a lot of knowledge, even on the various transactions through LinkedIn – emphasizes Kreczmar. – This will be able to more easily reach out to potential customers and offer them their own solutions designed for the corporate market. The advantage of LinkedIn important for Microsoft could also be a rich experience of service on the behavior of businessmen, which in turn helps in reaching them with a specific message – notes expert from Hypermedia.

Do not hide it, that the amount of the acquisition exceeds 26 billion dol. is it surprising and too high. – It must be remembered that in recent years, Microsoft has bought Skype, Yammer, and now LinkedIn – these are businesses that little overlap – assesses Kreczmar. – I think that some of these platforms Microsoft wants to eliminate or, more likely integrate them with other products. Likely to be example. Integrate Yammer Office, which in turn can give the business environment for internal communication – believes manager.

The Communication mentions that LinkedIn issues reporting the results Microsoft is expected to be part of the business company. It is hard to decide how it will affect the results of the entire segment. – Do not be surprised, however, if Microsoft was preparing for the final distribution on the part of the business, and this destined for the consumer market – as previously did the HP and several other players – notes Kreczmar.

– The amount of over $ 26 billion . for this acquisition I was a bit surprised, because as I recall LinkedIn capitalization amounted to 12-15 billion. In addition, current performance platforms are not stunning, but certainly we are dealing with a service with high growth potential users, which still continues. Of course, the question arises if this growth touches the ceiling, you need to bear in mind that the environment of businessmen around the world, though growing is for obvious reasons, less than even the ecosystem of Facebook – see Kreczmar.

The long-term investment in the valuable customers

Pawel Pilarczyk, editor-in-chief of technology services Onet.pl Group, in an interview with Wirtualnemedia.pl highlights the value of users, which through the acquisition of LinkedIn wins Microsoft. – Acquisition LinkedIn Microsoft made the biggest impression on me primarily through the prism of the amount which the producer put up Windows – not hiding Pilarczyk. – Especially in the context of that same service LinkedIn is not technically complicated, it does not contain any unique features too. And yet managed to accumulate one of the larger community – more than 400 million users – emphasizes the manager.

In his view, users of LinkedIn are much more valuable than those with Facebook, and the more you from snapchat, which is difficult to monetize. – On his LinkedIn account laid for corporate employees, bosses and business owners, students looking for work. There are hardly known. “Gimbazy” and other kids. It is therefore a very tasty morsel for Microsoft, which has the same excellent channel to reach their products for business, with Office at the helm. Manufacturer of Redmond can also maintain awareness that the primary operating system for personal computers is Windows, not Linux, Mac OS, Android or Chrome OS. Looking in this way, the investment of over 26 billion necessarily can quickly turn to, but it certainly will help keep Microsoft current market position – predicts Pawel Pilarczyk.

Author: ps

Learn more: LinkedIn, Microsoft, social network, online advertising

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