Tech Giant Microsoft to Buy LinkedIn Corporation in a $26.2 Billion All-cash Deal
The professional networking platform LinkedIn has got its new buyer in the form of Microsoft Corporation, one of the biggest software firms in the world.
Microsoft will buy LinkedIn for a fixed amount of $26.2 billion in an all-cash transaction for $196 per share. This billion dollar transaction is expected to close this calendar year, reports said. Despite this acquisition by Microsoft, LinkedIn’s brand, culture and independence shall remain distinct as always with Jeff Weiner retaining his position as the company’s CEO.
As per LinkedIn’s CEO Jeff Weiner “Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works,” – Source : BloombergTechnology
Global professionals deploy LinkedIn for connecting to other professionals in different fields and this is the main reason for the popularity of the professional networking platform. Last year had been quite happening for LinkedIn Corporation. LinkedIn launched its mobile app’s new version last year and this led to a significant upsurge in the number of member engagements besides leading to enhanced LinkedIn newsfeed. LinkedIn also acquired Lynda.com, a leading online tutorial platform last year.
LinkedIn’s acquisition is the biggest deal under Microsoft CEO Satya Nadella’s tenure who has been delivering his best ever since he took charge as the company’s CEO two years back. Mr. Nadella aspires to appeal to business customers with productivity tools and Cloud based services. However, the acquisition of LinkedIn is not the perfect fit for Nadella’s restructuring plans, industry experts say.
By acquiring LinkedIn, Microsoft will get to lay hands over the world’s largest professional network that connect recruiters, job seekers, human resource teams and professionals working in different streams. Microsoft’s CEO considers LinkedIn’s acquisition a perfect event for driving growth for the professional network as well as Microsoft’s Office 365 and Dynamics services.
As per Satya Nadella, “The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. “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.” – Source: BloombergTechnology
Already approved unanimously by the Board of Directors of both companies, the deal is now expected to close this calendar year. The closure however would be subject to receiving approval from LinkedIn’s shareholders and other regulatory bodies.