June 14, 2016 (LBO) – Microsoft is to acquire social networking site LinkedIn for 196 US dollars per share in an all-cash transaction valued at 26.2 billion US dollars, inclusive of LinkedIn’s net cash.
LinkedIn is the world’s largest and most valuable professional network and continues to build a strong and growing business.
Over the past year, the company has launched a new version of its mobile app that has led to increased member engagement.
It enhanced the LinkedIn newsfeed to deliver better business insights; acquired a leading online learning platform to enter a new market; and rolled out a new version of its Recruiter product to its enterprise customers.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” CEO of Microsoft Satya 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.”
The deal is expected to close this year and is subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.
Microsoft will finance the transaction primarily through the issuance of new indebtedness. Upon closing, Microsoft expects LinkedIn’s financials to be reported as part of Microsoft’s Productivity and Business Processes segment.
LinkedIn will retain its distinct brand, culture and independence.