Microsoft to buy LinkedIn for $26.2 billion

Microsoft is likely to use LinkedIn for gathering professional information. While the owners may walk away with a lot of their own money from this deal, LinkedIn share holders will be pleased too, as the news sent stock soaring nearly 200 per cent.

The acquisition, by far the largest in Microsoft’s history, will see LinkedIn maintain its brand with Jeff Weiner remaining on as CEO, reporting to Microsoft chief Satya Nadella.

“Today is a re-founding moment for LinkedIn”.

Following the announcement of the deal, the net worth of Reid Hoffman, the co-founder and chairman of LinkedIn, jumped by more than $900 million, on account of the increase in the company’s share prices.

Concerning the Biggest Deal Nadella said “We are in pursuit of a common mission centered on empowering people and organizations”.

It would also have nine per cent growth to more than 105 million unique visiting members per month, 49 per cent growth to 60 per cent mobile usage and 34 per cent growth to more than 45 billion quarterly member-page views.

Nadella said the deal brings together the world’s leading professional cloud with the world’s leading professional network. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365”. He is expected to get $2.9 billion for the sale of his stake.

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.

So what exactly will Microsoft do with LinkedIn? Despite the premium paid by Microsoft, LinkedIn is selling for well below its peak of more than $270 per share in 2015, but a weak forecast earlier this year sent its shares tumbling amid slowing online ad revenue.

Microsoft will finance the purchase primarily through new debt, but reiterated that it still intends to finish buying back $40 billion in its stock by the end of this year under its current authorization.