Microsoft To Acquire LinkedIn In A Whooping $26.2 Billion Deal
Microsoft announced Monday that it will acquire LinkedIn the social network for professionals with some 433 million users, for $26.2 billion, in an all-cash transaction, valuing LinkedIn’s shares at $196 each.
The Redmond, Washington based company said LinkedIn will retain its own brand and independence, and existing CEO Jeff Weiner will retain his position and report directly to Microsoft CEO Satya Nadella.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said.
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“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.”
This deal signifies Nadella’s first big acquisition since he took over the job more than two years ago.
The transaction, which has already been approved by both boards, must still get regulatory and other approvals.
If for some reason the deal does not go through, LinkedIn will have to pay Microsoft a $725 million termination fee, according to Microsoft’s SEC filing detailing the merger.
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More than 433 million people use LinkedIn worldwide to network, find jobs, and reconnect with old colleagues. Many of those LinkedIn users also pay for premium services to use the site.
