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Tuesday, 14 June 2016 00:49 - - {{hitsCtrl.values.hits}}
Reuters: Microsoft Corp agreed to buy LinkedIn Corp for $26.2 billion in cash, the companies said in a statement on Monday.
The offer of $196 per share represents a premium of 49.5 % to LinkedIn’s Friday closing price.
“Today is a re-founding moment for LinkedIn,” Reid Hoffman, chairman of LinkedIn’s board, said in a statement.
Jeff Weiner will remain chief executive of LinkedIn, reporting to Microsoft CEO Satya Nadella.
The deal, which has been approved by both companies’ boards, is expected to close by the end of 2016 subject to regulatory approvals. Previously, Microsoft’s biggest acquisitions have been Skype for $8.5 billion in 2011 and Nokia’s mobile devices business for $7.2 billion -- the latter of which has been a debacle, leading Microsoft to slash headcount in the Nokia division and write down most of the value of that deal.
LinkedIn has about 433 million members worldwide, up 19% year over year, and touts 105 million monthly unique visitors.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said in announcing the deal Monday. “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.”
Added Weiner, “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,” Weiner said. “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.”
“Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business,” said Hoffman. “I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”