Microsoft to Buy LinkedIn for $26 Billion

Front of Microsoft store

Microsoft has arranged to buy LinkedIn as part of the largest tech sale ever.
Image: FlickrCC/Mike Mozart

Microsoft announced recently that it will be acquiring LinkedIn for $26.2 billion, one of the largest tech deals in history. Microsoft purchased the social media site for $196 per share, and LinkedIn’s stock value soared 50 percent as soon as the news broke. Microsoft’s stocks, however, took a slight dip of around four percent.

This is a big help for LinkedIn, as its reign as the best performing social media site on the stock market ended this year (falling behind Facebook). That’s not to say LinkedIn is doing poorly; it made $3 billion in revenue during 2015 and boasts 433 million members in more than 200 countries. While their stock prices had been falling the past few months, this merger has turned things around.

Microsoft says it will be business as usual for the social media site, noting that LinkedIn employees will get to keep their titles and work under their current management team. CEO Jeff Weiner will keep his title and report to Microsoft CEO Satya Nadella.

“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365.

Weiner is just as excited about the merger.

“Just as we have changed the way the world connects to opportunity, this relationship with Microsoft and the combination of their cloud and LinkedIn‘s network now gives us a chance to also change the way the world works,” Weiner stated. “For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”

According to TechCrunch, LinkedIn will have to pay Microsoft a $725 million termination fee if the deal doesn’t go through, as stated in Microsoft’s filing with the Security and Exchange Commission.

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About DevonJ140
I am currently an Accounting Director living in New York City. I love reading and learning more about business, finance, tech, and current events.

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