Huge news at the start of the week. Microsoft to buy Linkedin for $26.2 billion in cash. Jeff Weiner will remain the CEO of Linkedin, reporting to Satya Nadella, CEO of Microsoft.
Microsoft buys Social Networking site LinkedIn for $26.2 billion
Microsoft has decided to buy social-networking site Linkedin in a cash transaction for $26.2 billion and it is the biggest deal ever so far from Microsoft corporation. The company announced that it has reached an agreement for the purchase of LinkedIn. The social network for professionals should be acquired for a total of US $ 26.2 billion, about $ 196 per share.
Linkedin was founded in the year 2002 and has approximately 400 million users. Linkedin comes under the list of social network, but its main purpose is to find professionals and work connections. Users in Linkedin can create the profile and later they can share their resume in order to find the job.
According to the sources, LinkedIn will retain its distinct brand, culture, and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction. The transaction is expected to close this calendar year.
Satya Nadella the CEO Of Microsoft said “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.”
Jeff Weiner the current CEO Of Linkedin said “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. For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”
Reid Hoffman who is one of the co-founder and executive chairman of Linkedin said “Today is a re-founding moment for LinkedIn. I see an incredible opportunity for our members and customers and look forward to supporting this new and combined business,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.”
Last year LinkedIn recorded a tremendous increase in the number of active users, which consists of 105 million active users per month, recording overall 433 million registered users.