Microsoft is going to acquire LinkedIn at $26, which is believed to be biggest sum paid by the software giant for any buyout till date. According to the deal, Microsoft will own stake in LinkedIn for USD 196 per share in all cash transaction worth $26.2 billion.
The deal would not affect LinkedIn brand, culture and operations. The CEO post will be retained by Jeff Weiner, who report to Satya Nadella, CEO of Microsoft. The deal is expected to be completed in this calendar year as it has been passed by both companies’ boards. However, the deal is still to be approved by the regulators and stakeholders of LinkedIN.
According to Time, LinkedIn CEO, Jeff Weiner states the reason behind selling LinkedIn to Microsoft. He clarifies,” The Microsoft that has evolved under Satya’s leadership is a more agile, innovative, open and purpose-driven company.,”
Satya Nadella is looking forward with this deal as he expresses,” The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals.” Further he says, “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”
With this news, the shares of LinkedIn go up by 47 percent after the announcement while MS stock was down by 3.2%.
Founded in 2002, LinkedIn is the largest professional service with over 433 million users around the world. On the other hand, Microsoft is an American multinational company producing OS, computer software and PCs.
Before LinkedIn, Microsoft major acquisitions have been Skype, Nokia, Aquantive, Mojang and Visio, and all of them were under $9 billion.