World tech giant Microsoft is agreed to acquire LinkedIn for $26.2 Billion deal. It is Microsoft’s biggest ever deal combining Software Giant’s with an online network LinkedIn which is of 433 million professionals. The offer of $196 per share represents a premium of 49.5% to LinkedIn’s Friday closing price.
LinkedIn chairman Reid Hoffman said, “Today is a re-founding moment for LinkedIn,” Jeff Weiner will remain chief executive of LinkedIn, reporting to Microsoft CEO Satya Nadella.
The transaction has been totally approved by the Boards of Directors of both LinkedIn and Microsoft. The deal is expected to close this calendar year and is subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.
Microsoft chief Satya Nadella today said new opportunities for monetization will be created once integration with LinkedIn, its largest acquisition till date, is completed.
LinkedIn is the world’s largest and most valuable professional network and it has been looking to expand its offerings with more messaging and mobile applications, and refurbished its “newsfeed” to help boost engagement.
Microsoft was committed to its top-notch rating and affirmed the credit at AAA. Johnson & Johnson is the only other credit it rates as AAA. Microsoft saw its shares fall 2.6 per cent on Monday, while the company’s bonds were between 6bp and 14bp wider.
LinkedIn was officially launched on May 5, 2003. LinkedIn has more than 9,700 full-time employees and its headquarter is in Mountain View, California. It has offices in 30 cities, including Bengaluru, Beijing, Chicago, Dubai, Dublin, Hong Kong and London.
In the first quarter of 2016, LinkedIn’s revenue increased 35 per cent to reach USD 861 million. It had estimate its revenue for the full year 2016 to be in the range of $3.65-3.7 billion.
This post has been seen 212 times.