We all know that in 2016 LinkedIn became a part of Microsoft after the tech giant purchased it for $26.2 billion and if you compare this acquisition with other purchases of Microsoft it seems to be going really well.
If you take a look at the user numbers of Microsoft’s LinkedIn, you’ll see that the numbers are increased more than 52% to 660 million and in the 2019 fiscal year revenue of Microsoft, the company added around $6.75 billion more. If you ask us, that is a huge profit margin for a product of Microsoft.
But we are all curious to know how LinkedIn is gaining more users under Microsoft umbrella as compared to other products like Nokia or aQuantive. What exactly is the secret behind the success of LinkedIn?
Well, Microsoft left this company alone.
Yes, You read it right, according to the statement by the chief executive officer Jeff Weiner to CNBC, Microsoft made a promise to let LinkedIn operates independently while purchasing it and the company also made a promise to make Weiner the head of the company while the co-founder Reid Hoffman of LinkedIn will be added to the board of directors of Microsoft whereas Weiner will report directly to Satya Nadela.
During his interview with CNBC, Weiner also stated about the good works by Satya on every single thing before the acquisition.
At the time of purchase and shortly after the purchase LinkedIn didn’t see much growth in its users but instead, it started to decelerate. If the platform was kept a public company despite deceleration what kind of response do you think the company would have seen from the Street? After a negative response would the LinkedIn ever feel confident enough to share more talent? Well, it’s really hard to answer to that but instead of failing; LinkedIn started to stabilize after a few quarters later after the purchase and eventually started to accelerate as well.
Well, this promise by Microsoft to Satya doesn’t mean that the company does not have any plans for its purchased product LinkedIn instead of this new acquisition is an attempt by Microsoft to learn from its past by moving more cautiously this time to prevent failures similar to its last purchased products.
After the purchase of LinkedIn, you’ll see some changes on the platform as the LinkedIn directory is now also accessible from Microsoft Outlook and the tech giant is also planning to create a specified ‘Intelligent NewsFeed’ which aimed to help managers understand its employee workings on projects by drawing information from the Office apps.
Being a stand-alone listed company made LinkedIn focus and aim on projects beyond the next quarter and this would never be possible if Microsoft didn’t allow the acquisition in the first place.
Read next: Is LinkedIn trying to make a comeback in 2020 with its new Groups features?
If you take a look at the user numbers of Microsoft’s LinkedIn, you’ll see that the numbers are increased more than 52% to 660 million and in the 2019 fiscal year revenue of Microsoft, the company added around $6.75 billion more. If you ask us, that is a huge profit margin for a product of Microsoft.
But we are all curious to know how LinkedIn is gaining more users under Microsoft umbrella as compared to other products like Nokia or aQuantive. What exactly is the secret behind the success of LinkedIn?
Well, Microsoft left this company alone.
Yes, You read it right, according to the statement by the chief executive officer Jeff Weiner to CNBC, Microsoft made a promise to let LinkedIn operates independently while purchasing it and the company also made a promise to make Weiner the head of the company while the co-founder Reid Hoffman of LinkedIn will be added to the board of directors of Microsoft whereas Weiner will report directly to Satya Nadela.
During his interview with CNBC, Weiner also stated about the good works by Satya on every single thing before the acquisition.
At the time of purchase and shortly after the purchase LinkedIn didn’t see much growth in its users but instead, it started to decelerate. If the platform was kept a public company despite deceleration what kind of response do you think the company would have seen from the Street? After a negative response would the LinkedIn ever feel confident enough to share more talent? Well, it’s really hard to answer to that but instead of failing; LinkedIn started to stabilize after a few quarters later after the purchase and eventually started to accelerate as well.
Well, this promise by Microsoft to Satya doesn’t mean that the company does not have any plans for its purchased product LinkedIn instead of this new acquisition is an attempt by Microsoft to learn from its past by moving more cautiously this time to prevent failures similar to its last purchased products.
After the purchase of LinkedIn, you’ll see some changes on the platform as the LinkedIn directory is now also accessible from Microsoft Outlook and the tech giant is also planning to create a specified ‘Intelligent NewsFeed’ which aimed to help managers understand its employee workings on projects by drawing information from the Office apps.
Being a stand-alone listed company made LinkedIn focus and aim on projects beyond the next quarter and this would never be possible if Microsoft didn’t allow the acquisition in the first place.
Read next: Is LinkedIn trying to make a comeback in 2020 with its new Groups features?
