Microsoft Corp. (Nasdaq: MSFT) and LinkedIn Corporation (NYSE: LNKD) on Monday announced they have 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.
LinkedIn Chief will remain President of the expert informal community, and will answer to President Satya Nadella.
Under the terms of the procurement, LinkedIn will look after its “particular image, society, and freedom.”
The arrangement is relied upon to be finished this logbook year.
The takeover is by far the biggest acquisition made by Microsoft, which paid $8.5bn for Skype in 2011 and bought Nokia’s mobile phone business for $7.2bn in 2013.
The LinkedIn acquisition also eclipses the $19bn that Facebook paid for WhatsApp in 2014.
Despite having a cash pile of about $92bn, Microsoft said it would pay for LinkedIn mostly by issuing new debt.
It expects the deal, which must be approved by regulators in the US, EU, Canada and Brazil, to generate annual savings of $150m by 2018.
The LinkedIn acquisition also eclipses the $19bn that Facebook paid for WhatsApp in 2014.
Despite having a cash pile of about $92bn, Microsoft said it would pay for LinkedIn mostly by issuing new debt.
It expects the deal, which must be approved by regulators in the US, EU, Canada and Brazil, to generate annual savings of $150m by 2018.
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