Microsoft Is Buying LinkedIn For $26.2 Billion

microsoft
Share this

In what is being considered as the biggest tech merger of all time, Microsoft is buying LinkedIn for a whopping $26.2 billion in cash. As the guardian reports, both companies announced the move on Monday.This is Microsoft’s biggest purchase ever and it said that LinkedIn would retain it’s distinct brand, culture and independence. The success of the deal would see Jeff Weiner, LinkedIn’s chief executive will report directly to Satya Nadella, Microsoft’s boss. Weiner said that the deal would give LinkedIn a chance  to change the way the world works.

The deal is at $195 per LinkedIn Share, with LinkedIn’s 430 million members being valued at more than $60. The announcement saw the LinkedIn shares soar 49% while Microsoft’s shares dipped close to 3%. LinkedIn has been struggling especially after it’s shares dropped 43% in February, wiping $11 billion of the value of LinkedIn in a day.

The two companies stand to benefit from the acquisition. Microsoft wants to use LinkedIn as a database of professional information and distribution channel for its software systems. In fact, Satya Nadella through a statement hinted at the competitive advantage he expects LinkedIn will provide for Microsoft. He said that together, the two companies would accelerate the growth of not only LinkedIn but also Microsoft Office 365 and dynamics. LinkedIn on the other hand, gain additional financing and access to millions of people who could potentially join the network.

The deal is expected to be completed by the end of this year.

Read more here and here.

Share this

Related posts

Leave a Comment