Monday, June 13, 2016

What do you pay Microsoft for your resume on LinkedIn? – BBC World

Logos LinkedIn and  microsoft Image copyright Reuters
Image caption Microsoft plans to finance new debt to purchase LinkedIn.

If you are a user of the professional social network LinkedIn, you might want to know that your profile and data housed there will be controlled by Microsoft.

The software giant announced Monday an agreement to buy LinkedIn for US $ 26,200 million in cash.

The figure means that Microsoft will pay about $ 250 for each 104 million active users that have the social network or about US $ 60 for each of the 430 million users with profiles created.

This is a record sale well over US $ 21,800 million paid Facebook for purchasing the messaging service Whatsapp in 2014.

Whatsapp then about 450 million active users, which means that the company Mark Zuckerberg paid a US $ 48 each.

a business apart

Microsoft said that after the purchase, LinkedIn keep “its own brand, culture and independence “.

Image copyright AP
Image caption Jeff Weiner, LinkedIn current CEO, will remain at the forefront of the social network.

Jeff Weiner will remain the CEO of the company, although now must submit reports to the head of Microsoft, Satya Nadella .

Weiner and Reid Hoffman, chairman, founder and principal shareholder of the company, supported the agreement with the software giant.

“This moment is like a refounding LinkedIn. I see a great opportunity for our members and customers “Hoffman said.

mutual gain

analysts believe that buying LinkedIn help boost sales of business software and Microsoft mail.

Ben Wood, head of research at consultancy CCS Insight, said that the deal will give Microsoft access to the largest professional social network in the world.

This is a valuable asset that can be deeply integrated with many Microsoft products as Office 365, Exchange and Outlook. That said, Microsoft has said the company will continue to operate independently, so we have to see how deep it is integration, “Wood said.

Meanwhile, LinkedIn has been trying to expand by offering more options messages, mobile applications and an update of its news service to try to increase the link with your users.

However, after receiving numerous complaints, last year promised to send less frequent messages and “more relevant “.

Image copyright Reuters
Image caption LinkedIn has been trying to expand, offering new services and updated.

Although it has reservations effective above about US $ 90,000 million, Microsoft has said it will finance the purchase of LinkedIn primarily through the issuance of new debt .

the company expects the deal to generate annual savings of US $ 150 million for 2018.

Before this, to enter into force, it must be approved by regulatory authorities in the United States, European Union, Canada and Brazil.

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More than money

Rory Cellan-Jones, technology correspondent BBC :

Have you ever received one of those annoying emails from LinkedIn inviting him to “validate” an ability of a contact? Perhaps the CEO of LinkedIn, Jeff Weiner, and its founder, Reid Hoffman, deserve to be validated by your sales skills, following the announcement on Monday.

After a difficult period, during which stocks fell, they persuaded Microsoft to make a delicious deal.

The software giant is paying for the purchase of LinkedIn an additional 50% over the closing price of the shares on Friday .

But this negotiation goes far beyond money: it is a powerful sign of the direction in which Satya Nadella is taking Microsoft. He sees his future as a business cloud computing offering all sorts of professional services to clients, including a social network to connect with each other.



Image copyright Microsoft
Image caption LinkedIn CEO Jeff Weiner; the head of Microsoft, Satya Nadella; and chairman of LinkedIn, Reid Hoffman.

“We try to ride the wave of new technologies. all has to do with the i Source Intelligence a rtificial, with the use of mobile devices, with the cloud , and try to put those things together, “said I Nadella from Seattle.

However, in 2013 the purchase of the division of cell phones Nokia had the same logic and the integer value of trading evaporated just a year later.

therefore, Microsoft shareholders can look with some nervousness that bill by US $ 26,000 million , while anyone with a few shares of LinkedIn may be using that network to send a message of congratulations to their managers.

Nadella said that for some time has admired LinkedIn. “I’ve thought about this for quite some time,” he said

Upon agreement, added. “It is key to our bold ambition to reinvent productivity and business processes”

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