Is LinkedIn part of Microsoft?

Yes, LinkedIn is part of Microsoft. Microsoft acquired LinkedIn in 2016 for $26.2 billion in one of the largest tech acquisitions in history. Since then, LinkedIn has been operated as a subsidiary of Microsoft.

LinkedIn was founded in 2002 by Reid Hoffman, Allen Blue, Konstantin Guericke, Eric Ly, and Jean-Luc Vaillant as a professional networking platform. It allowed members to create profiles summarizing their background and work experience and connect with other professionals around the world. LinkedIn grew quickly, reaching profitability by 2006 and going public in 2011.

By 2016, LinkedIn had over 400 million members globally and was generating billions in revenue through premium subscriptions, recruitment services, and advertising. However, user growth was slowing and LinkedIn’s stock price had fallen significantly from its peak. Meanwhile, Microsoft was looking to expand its presence in enterprise and productivity software.

Microsoft’s Acquisition of LinkedIn

In June 2016, Microsoft announced its intent to acquire LinkedIn for $26.2 billion in cash. At the time, it was Microsoft’s largest acquisition to date, far surpassing its $8.5 billion acquisition of Skype in 2011. The deal closed in December 2016.

Microsoft CEO Satya Nadella said the deal would bring together LinkedIn’s professional network with Microsoft’s enterprise offerings like Office 365 and Dynamics to help connect users with knowledge, insights, and opportunities. Microsoft saw it as a way to strengthen its footing in the enterprise and productivity space against rivals like Google and Facebook.

For LinkedIn, being acquired provided financial security and the resources to continue investing in growth under the wing of a large tech company. LinkedIn would maintain its brand independence and CEO Jeff Weiner remained in charge of LinkedIn’s operations.

Key Details of the Acquisition

• Purchase price: $26.2 billion in cash
• Announcement date: June 13, 2016
• Close date: December 8, 2016
• LinkedIn shareholders received $196 per share, a 50% premium to LinkedIn’s share price before the announcement
• The deal valued LinkedIn at 11 times their projected 2017 revenue
• Microsoft funded the acquisition primarily through debt financing

LinkedIn Under Microsoft

In the years since being acquired by Microsoft, LinkedIn has continued to operate as a subsidiary with its own CEO, brand, and culture. However, Microsoft has aimed to integrate LinkedIn deeper into its overall suite of enterprise offerings.

Key developments for LinkedIn under Microsoft include:

In terms of financials, LinkedIn’s revenue has grown steadily under Microsoft. LinkedIn generated over $10 billion in revenue for the first time in 2021. Microsoft does not break out LinkedIn’s profit specifically, but says that LinkedIn continues to improve operating margins each year.

As of 2022, LinkedIn has over 830 million members around the world. It remains the world’s largest professional networking platform. While owned by Microsoft, LinkedIn maintains its own corporate leadership structure. Jeff Weiner remains CEO of LinkedIn. Microsoft CEO Satya Nadella sits on LinkedIn’s board but is not involved in day-to-day operations.

LinkedIn’s Impact on Microsoft

The LinkedIn acquisition has provided several key benefits to Microsoft:

• Expanded enterprise offerings – By integrating LinkedIn data into Microsoft 365 and Dynamics, Microsoft has created more comprehensive tools and insights for enterprises.
• More data – Microsoft gains valuable data on professional identity, networks, and organizations through LinkedIn.
• Strengthened cloud services – LinkedIn benefits from Microsoft’s cloud infrastructure and services like Azure.
• Revenue growth – LinkedIn continues generating strong and growing revenue for Microsoft overall.
• Competitive edge – Owning the world’s largest professional network gives Microsoft advantages against rivals like Google and Meta.

However, Microsoft took on significant debt to finance the large acquisition. It did not end up being the transformative deal that some hoped for. LinkedIn operates independently and Microsoft has struggled to fully integrate it across products. But overall, gaining LinkedIn has bolstered Microsoft’s enterprise solution offerings.

LinkedIn’s Future at Microsoft

Looking ahead, LinkedIn is likely to continue operating as an independent subsidiary within Microsoft while being more tightly integrated into Microsoft’s ecosystem of products and services.

Potential developments include:

• Deeper integration with Microsoft business tools like Outlook, Teams, SharePoint, and Dynamics
• More synergies with other Microsoft properties like GitHub and MSN
• Leveraging Microsoft AI capabilities like machine learning for things like personalized recommendations and automated insights
• Introduction of new LinkedIn services powered by Microsoft technology
• Continued growth of LinkedIn Learning as a e-learning platform
• Expansion of LinkedIn’s recruiting services and tools

However, Microsoft is likely to continue allowing LinkedIn to operate independently to preserve its brand identity and culture. Major changes to LinkedIn’s business model or offerings are unlikely. LinkedIn’s value is in its professional networking data and brand, which Microsoft wants to leverage while avoiding significant disruption.

Conclusion

The acquisition of LinkedIn for $26.2 billion in 2016 marked a major milestone for both Microsoft and LinkedIn. While LinkedIn operates independently, Microsoft has benefitted from LinkedIn’s data and the ability to integrate its professional network and tools into Microsoft’s enterprise, productivity, and cloud offerings. For LinkedIn, being acquired provided new resources and security to keep investing in growth, while avoiding major changes under its new owner. Going forward, deeper integration with Microsoft is likely but LinkedIn is still poised to maintain its identity and independence within Microsoft’s broader technology ecosystem.