Microsoft to buy LinkedIn for $26.2b
Microsoft Corp has agreed to buy LinkedIn Corp for $26.2 billion in its biggest-ever deal, combining the software giant’s fast-growing cloud services business with the world’s largest online network for professionals.
The offer of $196 per share represents a premium of 49.5 per cent to LinkedIn’s Friday closing price.
LinkedIn’s shares were up by 48 per cent to $194.28 before the opening bell yesterday, while Microsoft’s shares went down by 3.3 per cent.
“Today is a re-founding moment for LinkedIn,” the Chairman of LinkedIn, Reid Hoffman, said in a statement.
Jeff Weiner will remain chief executive of LinkedIn, reporting to Microsoft CEO, Satya Nadella.
“I have always had a great admiration for LinkedIn. I have been talking with Reid and Jeff for a while … I have been thinking about this for a long time,” Nadella said in a video on Microsoft’s website.
The deal is expected to close this year, the companies said in a joint statement.
Microsoft said it would issue new debt to fund the deal.
After the deal, LinkedIn will become part of Microsoft’s productivity and business processes unit.