LinkedIn is a social networking service mainly used by professionals, in other words it is a business oriented platform for professionals to meet and exchange information, it currently has over 433 million users making use of its network to find jobs and connect with co-workers as well as industry experts. Many of the business and industry professionals also use LinkedIn premium to get rid of many restrictions that are otherwise not possible to eliminate.
Now in what they referred to as their biggest deal ever, Microsoft is purchasing LinkedIn corp for the sum of $26.2 billion in order to help get into the social media space.
This deal has the support of Reid Hoffman, the chairman and LinkedIn’s controlling shareholder and also, the support of both boards.
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.
Satya Nadella the CEO of Microsoft said that the current chief executive Jeff Weiner would retain his office after the purchase occurs, all Jeff need do is know that he has a new boss. Microsoft’s offer comes in at $196 per LinkedIn share which was a 49.5% premium when compared to Friday’s closing price. After the announcement, the shares rose to $194 which is a 48% increase. The deal most likely should close before this year runs out and the transaction would all be in cash using the new “dept” issued by Microsoft.
The CEO also said that LinkedIn will always keep up with its brand, culture, and independence as it does now at Microsoft. However, this acquisition clearly indicates LinkedIn’s struggles with slow growth.
The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. 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.
LinkedIn will thereafter become part of Microsoft’s productivity and business processes units. Its monetization would also be sped up via subscriptions and improvements to advertising as this has been planned for already by Microsoft.
Regulatory approval however, would be conducted in the U.S, Canada, the EU and Brazil.
Microsoft Corporation is an American multinational technology company headquartered in Redmond, Washington, that develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services. Its best known software products are the Microsoft Windows line of operating systems, Microsoft Office office suite, and Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox game consoles and the Microsoft Surface tablet lineup. It is the world’s largest software maker by revenue, and one of the world’s most valuable companies.
LinkedIn is a business-oriented social networking service. Founded in December 14, 2002 and launched on May 5, 2003, it is mainly used for professional networking. As of 2015, most of the site’s revenue came from selling access to information about its users to recruiters and sales professionals.
The company was founded by Reid Hoffman and founding team members from PayPal and Socialnet.com (Allen Blue, Eric Ly, Jean-Luc Vaillant, Lee Hower, Konstantin Guericke, Stephen Beitzel, David Eves, Ian McNish, Yan Pujante).