Technology and software giant Microsoft has announced that it has entered into an agreement to buy LinkedIn the world’s largest professional social network. The transaction is expected to close this calendar year.
According to Microsoft, the acquisition will be a cash transaction and has been set at $196 per share. This will value the deal at $26.2 billion which is inclusive of LinkedIn’s net cash.
This becomes the largest acquisition of a social network, beating Facebook’s $19 billion deal for WhatsApp.
Microsoft isn’t new to media acquisitions. It snapped up Skype for $9 billion in 2011 and Yammer for $1.2 billion in 2012.
LinkedIn is expected to retain its brand, culture, and independence and its current CEO Jeff Weiner will remain in this position but report to Satya Nadella, CEO of Microsoft.
The transaction has received full support from the boards of LinkedIn and Microsoft including Reid Hoffman, the chairman, co-founder and controlling shareholder of LinkedIn.
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4 comments
Skype acquisition – Skype got f**k*d
Nokia acquisition – Nokia got f**k*d
Yammer acquisition – who the f**k uses Yammer?
LinkedIn acquisition – next casualty
China may be locked down but i foresee some indian startup with a big pot of user data joining the billionaire ranks of the acquired in the coming years. But yeah, if I recall correctly, linkedin was having a hard time, with their valuation going down by billions a few months ago. This was the best thing for the shareholders but despite what they say, I think the future of the company as a distinct entity is up in the air.
I’m afraid LinkedIn is going to go down the drain
good buy but wrong price tag – Linkedin is a good buy here is why
1. Number of users – 433 million registered
2. Active users – 105 million monthly (Zimbabwe has a population of 12 million)
3. Yearly Revenue – 3 billion
Microsoft is shifting to become a company that primarily sells online services to business customers so buying Linkedin makes sense
My only issue is the pricing of the deal since Linkedin is currently not making profits