Microsoft Corp 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.
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LinkedIn, based in Mountain View, California, has more than 430 million members, according to the Associated Press. LinkedIn shares closed Friday at 131.08, so the offer would represent a almost 50% premium over that price. LinkedIn will be benefiting by reaching a vast audience with Microsoft’s huge corporate software ecosystem ameliorating their diminishing growth.
It has built a sizable following as a result of its specialization in professional networking, and businesses have been known to publish blog posts on LinkedIn that wind up serving as corporate statements on major issues.
LinkedIn chairman and co-founder, Reid Hoffman, who is the company’s controlling shareholder, said in a statement that the deal was a “re-founding moment” for the tech firm.
Jeff Weiner will remain as CEO of LinkedIn, and will now report to Microsoft CEO Satya Nadella. In the short term, however, LinkedIn will keep its own brand and independence and continue running as it is now. Microsoft shares slipped 3.6 per cent to $49.60. Microsoft shares, which were halted in pre-market trading pending the news, have since re-opened and fallen as much as 5.2%.
LinkedIn CEO Jeff Weiner said that acquisition would help his team write the next chapter in LinkedIn’s history.
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LinkedIn has a Dublin office and recently celebrated its five year anniversary in December 2015.
