Microsoft and LinkedIn

Microsoft acquires LinkedIn for $26 billion

In a massive development, Microsoft and LinkedIn have entered in an agreement under which the former will acquire the later one for all-cash transaction worth $26 billion. The professional social network LinkedIn has been bought $196 per share that is 50% above market value of $131.

According to the official press release, the transaction has been approved by the Boards of Directors of both Microsoft and LinkedIn. The deal will complete by the end of current year 2016. Jeff Weiner will remain the CEO of LinkedIn however, he will now be reporting to Microsoft’s CEO Satya Nadella. The company will keep its branding and product but will be a part of Microsoft’s productivity and business processes segment. The Tech Giant plans to integrate LinkedIn in many of its apps and services including Office, Skype and Cortana.

Here are official comments from Microsoft’s boss Satya Nadella,

The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals.

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.

As the news got aired, there was significant increase i.e. 46.90% in share price of LinkedIn rising from $131.05 to $192.56. There was slight drop of 2.90% in share price of Microsoft sliding from $51.49 to $50.01.

LinkedIn is the world’s largest and most valuable professional network having over 400 million users. With this acquisition, Microsoft has made a big move into enterprise social media. Let’s see how this deal empowers the digital media world.

SOURCE: TechCrunch

Post Author: Taha Munir