Episode 118. The Microsoft Acquisition

The Microsoft Acquisition

 Welcome to episode 118 of the LinkedInformed podcast at the end of a truly historic week for LinkedIn.

As you would expect I am going to concentrate all of this episode on evaluating Microsoft's acquisition of LinkedIn.

Advantages for Microsoft

• Entry into the social media space. An area they have neglected to get involved with previously which was beginning to look like a serious weakness.
• An opportunity to increase sales of Office 365 via extensive integration with LinkedIn’s functionality.
• Dynamics (Their CRM solution) will benefit the most from this acquisition and potentially allow it to become the market leader (currently Salesforce).
• Content from LinkedIn publishing allowing greater advertising opportunities.
• Big data. Rich information about people and their online behaviour.

Advantages for LinkedIn

• $26 billion!
• Greater resources to enable new products such as Profinder to be launched and rapidly expanded.
• $26 billion!
• Use of Microsoft’s massive cloud infrastructure.
• A way out of their stock-based compensation conundrum.
• $2.3 billion into Reid Hoffman’s bank account!

Advantages for Members

• I expect the under-resourced help centre to improve significantly
• Skype integration
• Integration with Outlook 365 & Dynamics.
• Better distribution of published posts

Disadvantages for Members

• Less Google optimisation
• Another secretive ‘closed’ culture
• Focus on corporates at the expense of SMB’s
• And …..