Microsoft has announced plans to buy LinkedIn for US$26.2 billion.
The all-cash agreement will value LinkedIn’s shares at US$196 each. Microsoft said LinkedIn will remain it’s own distinct brand and CEO Jeff Weiner will continue to run the company, reporting to Microsoft CEO Satya Nadella.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” said Nadella. “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.”
In a blog post announcing the acquisition, Weiner said the deal will allow the professional social networking company to continue to grow and better serve its 433 million members around the world.
“The LinkedIn you know and value is only getting better. LinkedIn will retain its distinct brand, culture and independence,” said Weiner. “We’ve been changing the way the world’s professionals have connected to opportunity for 13 years, and this is an opportunity for us to truly change the way the world works on a massive scale.”
The news comes a month after security researcher Troy Hunt revealed over 164 million LinkedIn email addresses and passwords had been exposed from a 2012 data breach.
LinkedIn’s business and share price have been on a rollercoaster recently. In February, it gave a surprise forecast for slower growth that led to a big sell-off, wiping out nearly $11 billion in market value. The company said at the time that its adjusted earnings would be 55 cents a share on revenue of roughly $820 million. Its stock climbed higher after it reported better than expected results for the first quarter, though not enough to recover from the earlier plunge.
The deal is expected to close by the end of the year.
LinkedIn shares soared 47 per cent to US$193.36 in morning trading Monday; however, Microsoft shares slipped 3.9 per cent to US$49.48.
– With files from the Associated Press
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