Microsoft Corp. and LinkedIn Corporation entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash. 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.
The transaction has been unanimously 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’s $196-per-share sale price is a 50% premium on LinkedIn’s $131 Friday closing price.
LinkedIn has more than 433 million members worldwide, and the social-media platform for working professionals receives more than 105 million unique visiting members per month. Since the recent launch of a new version of its mobile app, mobile usage of the site has grown 50% to represent 60% of total site usage.
In the hours directly after Microsoft’s announcement of the acquisition, LinkedIn stock had more than regained the 43% drop in price it had suffered since July of 2015.
