I do believe that Microsoft got a great bargain in acquiring LinkedIn from shareholders yesterday. The technology company has been struggling as of late and its shares were trading at half of its value in the last year. this would make one think that they purchased this company at exactly the right time.
Microsoft knows that as technology continues to grow being online will be key. Online sources such as Linkedin have made people all over the world more connected then they ever were before. Microsoft no doubt saw Linkedin as a way to continue to become one of the driving forces in the Internet revolution, so yes this was a sound investment on their part. They could only improve on this social media platform in the future.
Microsoft made a good move and acquiring LinkedIn because it not only purchased a significantly well run company, it also immediately expanded its business and market presence by expanding into places it does not currently serve. While time will only tell whether this was a good move or not, on paper it looks like a smart business decision.
Microsoft's pending acquisition of LinkedIn is a risky bet that cannot be categorized positively. It is an expensive deal, and the two companies have unique cultures that will be difficult to blend. LinkedIn's growth is slowing, and Microsoft may have difficulty revving it back up again. History is not on Microsoft's side, with most mergers and acquisitions failing.