Microsoft recently announced the acquisition of LinkedIn for a massive $26.2 B in an all-cash deal. This move is aimed at realizing LinkedIn’s full potential by partnering with Microsoft to innovate on solutions within the enterprise that have the potential for disruption.
Ever since its IPO in 1986, Microsoft has subsequently acquired over 225 companies. Since Microsoft’s first acquisition in 1987, it has purchased an average of six companies a year. The first billion-dollar acquisition was in 2000 when it acquired Visio Corporation. Ever since then, the company purchased more than 10 companies between 2005 and 2008 with a record acquisition of 18 firms in 2006.
Microsoft acquired a total of 12 companies for more than a billion dollars. These companies are
1. Visio Corp: acquired in 2000
2. aQuantive: acquired in 2007
3. Fast Search & Transfer: acquired in 2008
4. Skype: acquired in 2011
5. Yammer: acquired in 2012
6. Nokia's mobile and devices division: acquired in 2013
7. Mojang: acquired in 2014
8. Linkedin: acquired in 2016
9. Github: acquired in 2018
10. Affirmed Networks: acquired in 2020
11. ZeniMax Media: acquired in 2020
12. Nuance Communications: acquired in 2021
Here is a visualization showing Microsoft’s billion-dollar acquisitions over a period of 15 years.
LinkedIn’s acquisition by Microsoft is a major move to combine synergies that would help develop new businesses. With this acquisition, Microsoft would use LinkedIn’s technology and integrate it into its software to deliver the ‘ultimate professional experience’.
How is Microsoft’s acquisition of LinkedIn going to help both the companies and LinkedIn users? Is it a good bet by Microsoft to buy LinkedIn?
We'd love to hear your thoughts in the comments below.