Microsoft, LinkedIn Ink Deal, What’s In It For The Users?

Microsoft recently announced that it has made a $26.2 deal with professional social platform LinkedIn.

While there will be no major changes in terms of each company's structure, the deal has raised concerns on certain issues. The deal, according to some critics, might threaten Microsoft's word processing, email, and spreadsheet revenue.  Microsoft's move to ink the deal with LinkedIn could mean putting its traditional dominance at risk, according to Robert Cyran of Reuters.

Through the deal, Microsoft will be able to control the platform where most companies and employees make deals. However, the collaboration is not perfect just like any other deal, Cyran's commentary added. It can be recalled that LinkedIn also faced a security breach issue. The company is also trying to introduce some features to gain additional revenues, but have annoyed users.

In a press release, Microsoft CEO Satya Nadella said: "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 in the planet."

In the same press release posted on Microsoft's website, it said LinkedIn CEO Jeff Weiner will still hold his post, and will have to report to Microsoft's Nadella.

Weiner noted that "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."

The deal includes the financing set-up of LinkedIn. Microsoft will primarily finance the transaction by issuing new indebtedness. Despite the issues that hound the deal, the Board of Directors of Microsoft and LinkedIn approved the transaction and might take effect before the year ends.  Shareholders will have to approve the deal to make it official.