So Microsoft now owns your “Talent Solution” which was by far LinkedIn’s largest cash cow. “LinkedIn’s core business is based today around recruitment ads and, to a lesser extent, premium subscriptions for users. The recruitment business (termed “Talent Solutions”) accounted for $2 billion of the company’s $3 billion in revenues in 2015. “ – Techcrunch.com article
Possibly a Move to put Microsoft in the Social world and step up their competition with Salesforce, which I believe they tried to purchase back in 2011. Connecting LinkedIn directly to Office would also seem to be a good move. It could help meeting attendees learn more about one another. Reminds me of a calendar app I absolutely loved, Tempo, which was purchased by Salesforce. Interesting that LinkedIn’s shares dropped 42% this year.
Much of the talent we speak with at Fetch are completely fed up with LinkedIn. This is mostly due, in part, to over zealous recruiters with lack of knowledge for the positions that they are recruiting for. Can Microsoft change the minds of great talent? Or, do they even care?
Regardless of Microsoft’s motives this certainly is an interesting and exciting move on their part. Roger Martin writes in the June issue of Harvard Business Review, “typically 70%–90% of acquisitions are abysmal failures.”Is there any reason to think Microsoft’s $26 billion acquisition of LinkedIn, announced this morning, will beat the odds? It’s hard to know, but Martin’s article offers a simple rule of thumb: “Companies that focus on what they are going to get from an acquisition are less likely to succeed than those that focus on what they have to give it.”
I started this post with Microsoft now owns your “ Talent Solution” and they do.
What do they intend to do with it? Who knows, only time will tell.
What will recruiters do now? Most have relied heavily on LinkedIn and its keyword capabilities to fill their clients positions. Yep, jump on LinkedIn, run a keyword search and charge a 25% fee.
We believe there is a new and better way to hire. A way where the talent always drives the process. The talent chooses the employer and talent profiles are always anonymous until they choose otherwise. Times they are a changin’ and recruiting great talent has become increasingly difficult, as it should be. Has your staffing agency and/or strategy adapted? If not, they better!
Chase Morrow, Founder of Fetch – An entrepreneur with a passion and successful track record for start-ups. Now working with a talented group of individuals in an industry ripe for disruption.