Microsoft to buy LinkedIn

LinkedIn isn’t an obvious fit in the ongoing restructuring, but gives Microsoft the biggest global social network for professional that’s used by job seekers, recruiters and human resources teams.

LinkedIn, based in Mountain View, California, has more than 430 million members.

According to the press release, Jeff Weiner will remain CEO of LinkedIn, reporting to Nadella, CEO of Microsoft.

The deal, which has already been approved by the two companies’ boards, is expected to be completed by the end of this year. “I see incredible opportunity for our members and customers and look forward to supporting this new and combined business”, added Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn. With this deal, Microsoft can use LinkedIn’s database of professional information and distribution network for its software packages. The deal is expected to close this calendar year.

Purchasing LinkedIn for such a huge price has certainly surprised many people, particularly considering Microsoft’s sketchy track record of large acquisitions that includes busts like Nokia and Skype.

Jeff Weiner, the current Chief Executive Officer of LinkedIn will be keeping his current role in the company.

The offer of $196 per share represents a premium of 49.5 percent to LinkedIn’s closing price on Friday.

LinkedIn shares soared 47 percent to $193.36 in morning trading Monday. The sale terms allow LinkedIn to retain its distinct brand, culture and independence.

Microsoft announced on Monday that they had reached an agreement to acquire LinkedIn for $26.2 billion in cash.

“The first thing I tweeted out was, I think this is going to be awesome for our partners to help them sell more Office 365”, Schwartz told CRN.

The Microsoft, LinkedIn connection is the latest in a series of recent acquisitions and partnerships by Microsoft.

“I have always had a great admiration for LinkedIn”, Microsoft CEO Satya Nadella said in a video.

For LinkedIn, the deal provides hope to revive its slowing growth and stem the departure of its stakeholders after its stocks dropped from a high of $269 in February 2015 to $101.11 in February this year.