After the news of Microsoft acquiring LinkedIn in an all-cash transaction valued at $26.2 bn came in, the shares of LinkedIn surged 63%. Meanwhile, Microsoft shares plunged 4.3%.
The transaction has been unanimously approved by the Boards of Directors of both LinkedIn and Microsoft. The deal is expected to close this calendar year and is subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.
LinkedIn is the world’s largest and most valuable professional network. Over the past year, the company has launched a new version of its mobile app ; enhanced the LinkedIn newsfeed to deliver better business insights; acquired online learning platform called Lynda.com to enter a new market; and rolled out a new version of its Recruiter product to its enterprise customers.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “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.”
Jeff Weiner said, “Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works.”