Microsoft Will Acquire LinkedIn For $26 Billion; Jeff Weiner Will Now Report To Satya Nadella

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6:54 pm 13 Jun, 2016


LinkedIn is being acquired by Microsoft. If that is not the biggest news of the business world today we don’t know what is.

The amount Microsoft is paying for the acquisition is USD 26.2 billion (INR 1744 billion approximately) – all in cash.

Satya Nadella led Microsoft will get shares in LinkedIn at USD 196 per share.

 

LinkedIn CEO Jeff Weiner (left) with Satya Nadella (centre) and Reid Hoffman, chairman of LinkedIn board. Microsoft

LinkedIn CEO Jeff Weiner (left) with Satya Nadella (centre) and Reid Hoffman, chairman of LinkedIn board. Microsoft

Both companies have made the announcement of the acquisition. In their statement, Microsoft said that the transaction will close by the end of this financial year.

LinkedIn CEO Jeff Weiner will remain in his position but will now be reporting to Nadella.

 

LinkedIn, a social network of professionals, has performed quite well ever since its launch on May 5, 2003.

“Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organisation on the planet,” Nadella said.

Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, said, “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.”

 

But in February 2016, LinkedIn’s market value fell by around USD 11 billion after the company revealed that its revenue will not be as expected.

“This would imply that LinkedIn will grow around 15 percent in 2017 and 10 percent in 2018,” Mizuho Securities USA Inc analysts had told Reuters.


It is worth noting that LinkedIn is facing pressure in markets of Europe, the Middle East, Africa and Asia-Pacific.

 

In spite of how this new acquisition turns out, it is interesting that no one saw this coming.

 

 

The deal amount eclipses the USD 22 billion Facebook paid for WhatsApp.

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