196th Macro Acquisition by Microsoft - Prometheus IP

July 20, 2016by Avanthi2

Macro Acquisition by MicrosoftMacro Acquisition by Microsoft the American Multinational Technology Company is all in the news for its biggest acquisition of LinkedIn. Microsoft has numerous acquisitions to date with a total of 196 acquisitions. Its first acquisition started in 1987 with an average of six companies per year. It had the highest acquisition rate between 2005 and 2008 by purchasing more than ten companies a year, and in 2006 alone it acquired 18 firms. The following are the 17 highest acquisitions (year wise) of Microsoft till date.

Macro Acquisition by Microsoft

S.No Company Business Year Estimated Value (USD)
1 WebTV Networks Internet Service Provider 1996 $425 million
2 Hotmail Internet Software 1997 $500 million
3 Linkexchange Internet Advertising Network 1998 $265 million
4 Visio Corporation Wholesale Drawing Software 2000 $1.3 billion
5 Great Plains Software Business Management Software 2001 $940 million
6 Navision Software Programming 2002 $1.3 billion
7 Rare Software and Video Games 2002 $375 million
8 Placeware Web Conferencing 2003 $200 million
9 Groove Networks Community Software 2005 $171 million
10 Massive Incorporated Video game advertising 2006 $280 million
11 TellMe Networks Mobile Phone Software 2007 $800 million
12 aQuantive Digital Marketing 2007 $6.3 billion
13 Danger Mobile Internet Software 2008 $500 million
14 Fast Search & Transfer Enterprise Search 2008 $1.2 billion
15 Greenfield Online Search & eCommerce sites 2008 $486 million
16 Skype Technologies Telecommunications 2011 $8.5 billion
17 Nokia Mobile Phones Unit Mobile Phones & Smart Phones 2013 $7.2 billion

Mid 2016 saw Microsoft moving a step further and acquiring LinkedIn valued for $26.2 billion with $196 per share. It was announced that LinkedIn C.E.O. Jeff Weiner will be continuing with his current role and reporting to Microsoft CEO, Satya Nadella. Besides the acquisition, LinkedIn will further continue to operate as an “independent brand,”

LinkedIn, the world’s largest professional networking

The site was founded by Reid Hoffman in 2002. It is the Facebook of the professional world and the storehouse for resumes of professionals. In February 2016, LinkedIn had its worst day ever, with shares tumbling as much as 44 percent and also suffered a huge data security infringement, wherein 117 million profile passwords were hacked and put for sale on the black market which also included high-profile users like Facebook C.E.O. Mark Zuckerberg. Due to these tumbling shares, LinkedIn was at the lowest cost to be bought and since LinkedIn is the only biggest professional social networking site with 433 million users, Microsoft aimed at becoming the Market Leader with this acquisition. As a result of this acquisition, LinkedIn would also grow faster and will be appearing as a default feature in all the Microsoft related devices and software.

The whole environment of LinkedIn has changed after its Macro Acquisition by Microsoft, now it is not just about having a profile and finding a job in LinkedIn, but finding a suitable economic opportunity. LinkedIn isn’t just a social network anymore- it’s a means to track down opportunities and find and develop the skills that keep you competitive.

What is it that actually made Microsoft acquire LinkedIn?

How is LinkedIn useful to Microsoft? People across the world have been waiting for the silence to break. Well, Microsoft CEO Satya Nadella himself has disclosed that generally in the US, LinkedIn is used for searching for jobs and connecting with colleagues or work-related people across the world. Microsoft will utilize LinkedIn information to enable applications like Delve, which is already a part of Office 365.

With the combination of Office 365 and LinkedIn, the LinkedIn newsfeed will display articles related to the project one is working on and also suggestions to connect with related experts. Accordingly, the LinkedIn and Office 365 combination would grow and give way for new opportunities for the individuals. In addition, LinkedIn will be surfaced in Microsoft related apps like Outlook, Skype, Office, and even Windows. Microsoft is working on to turn LinkedIn profiles into central identity, its newsfeed into a smart stream of data that helps connect the professionals to one another through shared notes, meetings, video conferencing, and email activity.

LinkedIn, in turn, gathers detailed information about its users which includes their education, resume, employment history, their contacts, etc. This data is much valuable to Microsoft, as it takes this information and utilizes it to help build offers for managing relationships. The core idea of both LinkedIn and Microsoft working together is to uplift productivity and make them essential for every individual. When it comes to gathering the information of any individual, privacy concerns surface.

Microsoft CEO has briefed that “nothing will get connected or linked without users opting in”. By making Office 365 a more powerful application, Microsoft sells more Office 365 subscriptions, particularly to enterprises and small businesses. With a total of 1.2 billion Office users, and 70 million Office 365 monthly users, and 433 million users LinkedIn, Microsoft aims to make both the networks essential. There is also an IP dimension to this huge acquisition. LinkedIn is said to have more Patents than any other social networking site and also its patent holdings are stronger in the US. LinkedIn has a total of 1,660 active Patents, among which 1,085 are active US patents and 206 are the original patents of LinkedIn.

One of the most striking Patent acquisitions by LinkedIn

was in 2015 by purchasing 801 patents from IBM. Along with IBM, LinkedIn also purchased patents from other firms like AT&T, Yahoo, Cisco, etc. This would surely add as one of the benefits of Macro Acquisition by Microsoft. Within days after the acquisition of LinkedIn by Microsoft, capitalists looked around to check which other firms Microsoft might have their eyes on. After Microsoft news about its acquisition, shares of Twitter rose about seven percent hoping that Microsoft would make the sale of this struggling social media. Twitter investors wishing for a LinkedIn style Macro Acquisition by Microsoft. But one should know that every tech firm is not lucky enough to have a Macro Acquisition by Microsoft.

Check out our recent post – https://prometheusip.com/copyrights/copyright-for-businesses-in-2020/

 

Avanthi

Avanthi is a Registered Patent Agent with Indian Patent Office. Working as a IP Group Administrator & Business Development professional at Prometheus Patent Services, She deals with clients and helps in coordinating meetings and managing sales growth. Having extreme communication skills and expertise in Intellectual Property, She manages the business relationship with leading IP Attorneys & Illustrators based in US, Europe and Japan. She closely works with some of the Fortune 500 companies in maintaining the IP portfolio.

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