The Goldman Sachs technology M&A team, led by Sam Britton, has cashed in on its software focus and decades of experience to dominate 2019's biggest deals.Technologyread more
American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
Microsoft has, erm, a checkered history with acquisitions.
It bought Nokia for $7.2 billion in 2014, then had a $7.6 billion write down on that business a year later. It bought Yammer for $1 billion, but failed to develop the enterprise messaging application, and now Slack is poised to own the enterprise chat space. It paid $6 billion for ad tech company aQuantive, then wrote that down.
So, Microsoft's decision to pay $26.2 billion for LinkedIn has a few people raising their eyebrows thinking Microsoft is about to make another massive mistake.
And those people could be right! This could be yet another big mess.
However, there's reason to believe this time is going to be different. And that reason is Satya Nadella, Microsoft's relatively new CEO.
All of the previous deals that failed were executed by Steve Ballmer, Microsoft's former CEO who had a different view of the world. Ballmer was more of a top-down, autocratic leader, whereas Nadella has embraced partnerships and has taken a more open approach to Microsoft's business.
LinkedIn CEO Jeff Weiner seems to be aware that people would wonder about whether or not Microsoft will do a good job running the professional social media site. To that end, in a lettter to employees he said:
When Satya first proposed the idea of acquiring LinkedIn, he said it was absolutely essential that we had alignment on two things: Purpose and structure. On the former, it didn't take long before the two of us realized we had virtually identical mission statements. For LinkedIn, it was to connect the world's professionals to make them more productive and successful, and for Microsoft it was to empower every individual and organization in the world to achieve more. Essentially, we're both trying to do the same thing but coming at it from two different places: For LinkedIn, it's the professional network, and for Microsoft, the professional cloud. ...
Turning from purpose, we focused our attention on potential structure. I had no idea what Satya was going to propose, but knew how difficult acquisition integrations could be if not established the right way from the start.
Long story short, Satya had me at "independence." In other words, his vision was to operate LinkedIn as a fully independent entity within Microsoft, a model used with great success by companies like YouTube, Instagram and WhatsApp. I would remain as CEO and report directly to him instead of a board. Together, along with Reid [Hoffman, co-founder of LinkedIn], Bill Gates, my former colleague Qi Lu, and new partner Scott Guthrie, we would partner on how best to leverage this extraordinary combination of assets while pursuing a shared mission. This, we both agreed, might not only be a structure that could work, it would be one in which both companies could thrive.
In other words, Weiner believes LinkedIn will be given room to operate freely, which he thinks means LinkedIn will thrive, not wither at Microsoft.