Microsoft has announced that it will acquire LinkedIn for an agreed deal sum of $26.2 billion, inclusive of LinkedIn's net cash. After the acquisition, LinkedIn will retain its distinct brand, culture and independence, according to a joint statement.
Microsoft Corp agreed to buy LinkedIn Corp for approximately Rs 17,58,02,00,00,000 ($26.2 billion) in its biggest-ever deal, combining the software giant's fast-growing cloud services business with an online network of 433 million professionals.
This is the biggest acquisition by Microsoft since Satya Nadella took over as the CEO of the company. The offer of $196 per share represents a premium of 49.5 percent to LinkedIn's Friday closing price.
Reid Hoffman, chairman of LinkedIn's board and the company's controlling shareholder, said the deal has his full support.
"I have always had a great admiration for LinkedIn," Microsoft CEO Satya Nadella said in a video on Microsoft's website. "I have been talking with Reid and Jeff for a while ... I have been thinking about this for a long time."
Jeff Weiner will remain chief executive of LinkedIn and will be reporting to Nadella. Microsoft plans to speed-up monetisation of LinkedIn by growing individual and organization subscriptions as well as targeted advertising, it said.
The deal, which won the unanimous support of both boards, is expected to close this year, the companies said. Microsoft said it would issue new debt to fund its acquisition.
After the deal, which will require approval from regulators in the United States, the EU, Canada and Brazil, LinkedIn will become part of Microsoft's productivity and business processes unit, the companies said.
This comes in as a huge move as it will be Microsoft's entry into the Social Media space and the company will be looking to accelerate their office and work products through LinkedIn once the acquisition is complete.
(With inputs from Reuters)
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