Nadella: LinkedIn will become a series of many Microsoft products social architecture

Microsoft’s price of $ 1.96 per share, to spend $ 26.2 billion acquisition of professional networking site Linkedin. Transaction has been approved by the board of directors of Microsoft and Linkedin. This price Linkedin previous valuation premium compared with 49.5%. After the deal was announced, Microsoft and Linkedin jointly held a conference call with analysts, purpose and future development to make an explanation of the transaction.

ยท Microsoft CEO Satya Nadella (Satya Nadella) represented at the meeting, Linkedin will retain their own brands, culture and independence. Linkedin CEO Jeff Weiner (Jeff Weiner) will stay on Linkedin CEO, joined Microsoft executive team and report directly to themselves. He also said, Linkedin founder Reid Hoffman (Reid Hoffman) fully supports this transaction, the acquisition is expected to be completed this year.

Nadella emphasized that Microsoft and Linkedin share a common mission, it is to support each and every company in the world to achieve greater value, and the best way to achieve this goal is to connect each of the world’s professionals to help them be more productive and more successful. This is the Microsoft acquisition Linkedin purposes. Weiner said, Linkedin has over 433 million users and 105 million monthly active users worldwide, the mobile terminal traffic accounted for 60%, and continues to grow. In particular, he stressed that China is the fastest-growing market Linkedin.

Nadella spoke, Linkedin and Microsoft Office 365 and Dynamics business has a strong synergistic effect, which is Microsoft’s core business lies. Microsoft will by individuals and businesses as well as many business subscription model for advertising, accelerate these three business interaction and collaboration. There are significant growth opportunities in this regard.

Specifically, he said that Microsoft has 1.2 billion Office users, Windows 10 installed capacity of over 300 million, Office 365 users to 70 million monthly living, Dynamics 800 million users. But only to Microsoft may reach 9% of the market range, which means that Microsoft has a huge room for growth. Now, Microsoft has a Linkedin has 433 million users and 105 million active users. Microsoft’s enterprise service maps and Linkedin professional social graph integration exciting prospect.

Nadella cited as an example of the synergistic effect of the empty space of Microsoft and Linkedin. He mentioned, LinkedIn will become the connection between Microsoft and many other social services infrastructure, whether it is Outlook, Excel, Skype, Powerpoint, Word, or SharePoint. Microsoft’s powerful artificial intelligence and machine learning techniques for the rapid growth of information flow LinkedIn brings improved, helping the latter to enhance the liquidity of the ad.

Microsoft general counsel Brad? Smith (Brad Smith) describes that, before the two sides to complete the transaction requires the approval of the US, EU and Canadian regulatory authorities, etc., which does not include Japan, South Korea and China. Microsoft expects that this transaction is expected before the end of the year to get regulatory approval. He noted that Microsoft and Linkedin business no significant overlap, but complementary, Microsoft can help Linkedin expand their business. The merger is conducive to the world’s hundreds of millions of users to bring more benefit.

Microsoft CFO Amy Hu DS (Amy Hood) spoke, Microsoft agreed to pay $ 196 per share, all-cash transaction by way of acquisition of Linkedin. The deal worth $ 26 billion, including net cash Linkedin. Microsoft will before the completion of the transaction, with the favorable market window new issues, financing for the acquisition. She mentioned that the main purpose of the acquisition is to accelerate business growth Linkedin Linkedin and Office 365 and Dynamics, and is expected to bring cost synergies of $ 150 million per year.

She is expected in 2017 and 2018 fiscal years, the deal would give Microsoft a non-GAAP earnings per share to bring about 1% dilution. After completion of the transaction, Microsoft will continue to publish impact of the acquisition on earnings per share caused. DS Hu stressed that the transaction will not affect Microsoft’s current equity repurchase program, Microsoft will continue to promote the end of the year $ 40 billion equity repurchase program previously approved.

Some analysts asked Microsoft over the past few strokes huge deal less successful, but growth is slowing Linkedin. Nadella said that Microsoft is in three dimensions to measure whether the acquisition. First, whether the acquisition will help Microsoft to enter new markets or enhance current market competitiveness? Second, whether the transaction can bring significant synergies? Thirdly, the transaction is in line with Microsoft’s core business, part of Microsoft’s enterprise architecture to integrate, focus on the best in the field of executive power. In his view, Linkedin transactions fully comply with three conditions.

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