Microsoft announced on Monday that it will purchase LinkedIn, the social media career, and business platform, for $26.2 billion in a cash transaction.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,â€ said Microsoft CEO Satya 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.â€
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.
“Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works,â€ said Jeff Weiner, CEO of LinkedIn.
“For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.â€
Reid Hoffman, chairman of the board, co-founder, and controlling shareholder of LinkedIn, said, “Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business. I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.â€
Here are a few facts surrounding the deal:
- The $26.2 billion sticker price breaks down to the purchase being made at $196 per share.
- Jeff Weiner will remain LinkedIn’s CEO and will report directly to Microsoft’s CEO.
- Microsoft will operate LinkedIn as an independent brand.
- Microsoft views the purchase as an opportunity to increase engagement not only across LinkedIn but for Office 365, its cloud-based productivity suite, and for Dynamics, Microsoft’s CRM and ERP enterprise solution.
- With 433 million current members, LinkedIn’s customer base will potentially add millions of additional users to subscribe to Microsoft products including Office 365, its cloud platform Azure, and Dynamics.
- Microsoft plans integration between LinkedIn and its digital assistant, Cortana.