Microsoft agrees to buy LinkedIn for $26.2 bln
REDMOND / MOUNTAIN VIEW
REUTERS photoMicrosoft Corp has agreed to buy LinkedIn Corp for $26.2 billion in cash, the companies said in a statement on June 13.
The offer of $196 per share represents a premium of 49.5 percent to LinkedIn’s June 10 closing price, as noted by Reuters.
LinkedIn will retain its distinct brand, culture and independence, according to the statement. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft, it added.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said.
“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.”
Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully supported the transaction, which is expected to close this calendar year.
“Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business,” said Hoffman.
“I fully support this transaction and the board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”
Microsoft will finance the transaction primarily through the issuance of new indebtedness, according to the statement.
Upon closing, Microsoft expects LinkedIn’s financials to be reported as part of Microsoft’s Productivity and Business Processes segment.