Microsoft Corp will acquire LinkedIn in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash. Microsoft in its official blog announced that it has entered into a definitive agreement with LinkedIn in which it will acquire the latter for $196 per share.
While LinkedIn’s shares went up 63%, Microsoft’s shares tanked 4.3% in pre-market trading. LinkedIn will retain its brand, culture and independence, the blog said.
Microsoft CEO Satya Nadella tweeted, “.@Microsoft & @LinkedIn: world’s leading professional cloud + world’s leading professional network .”
Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. “Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction,” the release said.
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.
— Satya Nadella (@satyanadella) June 13, 2016
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.
Watch: Satya Nadella and Jeff Weiner on Microsoft acquiring LinkedIn
“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.”
Changing the way the world works. Amplifying the path forward! @jeffweiner and Satya Nadella https://t.co/viHN0FkjiL
— Reid Hoffman (@reidhoffman) June 13, 2016
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.”
“For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story,” he added.
Microsoft will finance the transaction primarily through the issuance of new indebtedness. Upon closing, Microsoft expects LinkedIn’s financials to be reported as part of Microsoft’s Productivity and Business Processes segment.