U.S. software company Microsoft has agreed to buy LinkedIn for $ 26.2 billion. Microsoft will pay $ 196 per share in full cash for Linkedin. Linkedin shares were up 49.5 per cent on Friday following news of the acquisition.
The amount Microsoft agreed to pay to buy LinkedIn amounts to 91 times LinkedIn's profit before tax depreciation interest, according to Bloomberg data. That multiplier was the highest among acquisitions totaling over $ 5 billion this year, according to Bloomberg data.
The deal announced today was the largest acquisition ever under the direction of Microsoft CEO Satya Nadella. Nadella has tried to lure company customers with cloud-based services and productivity tools since 2014, when he took office. Linkedin's ongoing restructuring process doesn't apply to Microsoft, but Microsoft employees, job seekers, human resources, affords access to the world's largest social network used by companies and employers. Through the acquisition, as well as LinkedIn's growth, Office 365 and Dynamics services will grow, Nadella said in a statement.
Linkedin shares, which traded in New York after the announcement, rose 49 percent to $ 194.63. Microsoft shares fell 3.7 percent to $ 49.60.
Linkedin will retain its brand name, company culture and independence under the deal, while Jeff Weiner, the company's chief executive, will continue in his post, according to a statement from Microsoft on Monday.
"Microsoft and Linkedin are joining forces to strengthen professionals and institutions," Linkedin said in a statement on its twitter account, sharing CEO Jeff Weiner's views on the contract. Microsoft announced to its followers on its twitter account that it was buying LinkedIn.
According to webrazzi, shares of LinkedIn, the world's largest professional network, had dropped as low as $ 100 earlier this year, although they had soared enough to see $ 269 a year earlier.
• LinkedIn's number of members is 433 million, with an annual growth rate of 19 percent
• Monthly single visitors 105 million, annual growth rate of 9 percent
• 60 per cent have mobile usage and the growth rate is 49 per cent
• Number of page views in excess of 45 billion per quarter, annual growth rate 34 %
• There are more than 7 million active job openings and an annual growth rate of 101 percent
With this move, Microsoft seems to have solidified its hand in big data competition both on the Corporate Solutions side and on the web.Source