Technology giant Microsoft today said it will acquire professional networking platform LinkedIn in an all-cash transaction valued at $26.2 billion.
Microsoft will acquire LinkedIn for $196 per share in an all-cash deal valued at $26.2 billion, inclusive of LinkedIn’s net cash, Microsoft said in a statement. LinkedIn will retain its distinct brand, culture and independence, it added.
Jeff Weiner will continue to remain the CEO of LinkedIn, and will be reporting to Microsoft CEO Satya Nadella. Speaking on the acquisition, Nadella 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.".@Microsoft & @LinkedIn: world's leading professional cloud + world's leading professional network https://t.co/63V90F77Wj— Satya Nadella (@satyanadella) June 13, 2016
LinkedIn started out in the living room of co-founder Hoffman in 2002 and was officially launched on May 5 in 2003.
LinkedIn has seen 19 per cent growth year-on-year to more than 433 million members worldwide while quarterly member page views rose 34 per cent to over 45 billion. Over 92 million users came from Asia and the Pacific region.
In the first quarter of 2016, LinkedIn’s revenue increased 35 per cent year-on-year to reach $861 million. It had forecast its revenue for the full year 2016 to be in the range of $3.65-3.7 billion.
Weiner said that with the combination of LinkedIn's social network and Microsoft's cloud would give
LinkedIn 'a chance to change the way the world works'. "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," said Weiner.
The transaction has been unanimously approved by the Board of Directors of both companies.
LinkedIn shares which had dropped 42 percent this year, have suddenly jumped to 48 percent to $194.35. Microsoft shares on the other hand, fell 2.9 percent according to the Wall Street Journal.
Microsoft has been making some big acquisitions off late. It had bought out Nokia Corp's mobile phone business at $7.2 billion in 2013; in 2011, Microsoft bought Skype for $8.5 billion; it also bought Mojang AB, the maker of video games such as 'Minecraft' for $2.5 billion in 2014.
Since Nadella took over as CEO, LinkedIn is definitely a major aquisition. Microsoft has also made acquisitions such as the Sunrise calendar app at $100 million and to-do app Wunderlist between $100-$200 million in 2015.
Microsoft hasn't stated how it is indeed going to use LinkedIn, but has stated that the professional social network will continue operating as it is.
Follow Me on Twitter>>> @iamBhavish
And like us on Facebook>>> The Gud1
No comments:
Post a Comment