Jeff Weiner to remain CEO.
By Sreekanth A. Nair
Technology major Microsoft said on Monday that it will acquire professional social networking platform LinkedIn in an all-cash deal of $26.2 billion.
“Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash. LinkedIn will retain its distinct brand, culture, and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft,†the company said on Monday.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,†Nadella said in a statement. “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,†he added.
The transaction is expected to close this year. Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction. The transaction has been unanimously approved by the Boards of Directors of both LinkedIn and Microsoft.
Microsoft will finance the transaction primarily through the issuance of new indebtedness. Upon closing, Microsoft expects LinkedIn’s financials to be reported as part of Microsoft’s Productivity and Business Processes segment.
Morgan Stanley is acting as an exclusive financial advisor to Microsoft, and Simpson Thacher & Bartlett LLP is acting as legal advisor to Microsoft. Qatalyst Partners and Allen & Company LLC are acting as financial advisors to LinkedIn, while Wilson Sonsini Goodrich & Rosati, Professional Corporation, is acting as legal advisor.
“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,†Nadella said.
Officially launched on May 5 in 2003, LinkedIn is the world’s largest and most valuable professional network with more than 433 million members worldwide.
Microsoft has been struggling to find new ways to find revenue in recent years. The deal is expected to give a new breath of life to Microsoft.