Microsoft is scooping up LinkedIn for $26.2 billion, the companies said on Monday, in the tech giant’s biggest acquisition under CEO Satya Nadella.
Microsoft will pay $196 per share in cash for the professional social network, representing a 44% premium over LinkedIn’s closing price of $136.52 on Friday. Shares of LinkedIn surged 48% to $194.51 in pre-market trading on Monday.
LinkedIn’s CEO Jeff Weiner will remain in his current role and report to Microsoft’s Nadella. Weiner and LinkedIn’s cofounder Reid Hoffman, who is the company’s controlling shareholder and worth an estimated $2.9 billion, stated they are both in favor of the acquisition.
“Today is a re-founding moment for LinkedIn,” said Hoffman in prepared remarks. Weiner added: “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.”
In a presentation to investors released on Monday morning, Microsoft noted a shared goal of “empowering people and organizations” and touted LinkedIn’s growing user base, engagement and revenue. LinkedIn currently has 433 million members (up 19% from a year ago) across 200 countries and territories.
The tech giant will seek to further support LinkedIn’s growth and boost its bottom line through targeted advertising and more individual and organization subscriptions. Microsoft also noted an opportunity to equip professionals with the tools they need to be more productive. (Forbes)
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