US Software giant, Microsoft, is buying professional Social Network site Linkedin for $26.2bn in cash, according to latest media reports.
The offer of $196 a share represents a 50 per cent premium to LinkedIn’s closing price on Friday and is inclusive of the professional networking website’s net cash. LinkedIn’s share price immediately rocketed to that level, while Microsoft shares fell 4 per cent.
Under the terms of the deal, Jeff Weiner will stay on as chief executive of of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.
In a statement, Microsoft said:
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.
In an email to staff, Microsoft ECO Satya Nadella said:
This deal brings together the world’s leading professional cloud with the world’s leading professional network… LinkedIn will retain its distinct brand and independence, as well as their culture which is very much aligned with ours.
He added that any staff not already using the network should “join up now and start using and learning more.”