Microsoft buys LinkedIn for $26.2 billion in cash



Microsoft today announced that it is purchasing LinkedIn in an all-cash deal valued at $26.2 billion or $196 a share. Stockholders of the business networking site saw the price of their shares soar 47% this morning to $193. LinkedIn has more than 433 million members, most of them business professionals looking to network digitally without attending trade shows or flying countless hours for face-to-face chats. Many LinkedIn members have found new jobs and customers using the site.

Microsoft's press release stresses that LinkedIn "will retain its distinct brand, culture and independence." CEO Jeff Weiner will keep his title, reporting to Microsoft CEO Satya Nadella. Weiner told his employees in a note that "little is expected to change" and employees will have the same job titles and managers. There is one exception. LinkedIn personnel whose job it is to maintain the company's stock exchange listing will have to find a new job.

Most Wall Street analysts were positive about the transaction. Ivan Feinseth, CIO at investment firm Tigress Financial Partners, called it a great deal that allows Microsoft to become a bigger player in social platforms.


Microsoft shares are down $1.28 or 2.5% this morning at $50.20. The all cash-deal means that there won't be dilution of the software giant's stock. The deal is expected to close some time this calendar year.


source: Microsoft, CNBC

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13 Comments

1. zeppo

Posts: 200; Member since: Jul 21, 2015

Cash only! Microsoft is still a very rich company.

8. GreenMan

Posts: 2697; Member since: Nov 09, 2015

Cash? Cash! How many armoured bank vans would it take to carry 26 Billion of cash, I wonder? In the neighbourhood of 1000 or so, eh? Anyone?

16. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

With that kind of cash laying around, I don't see why CEO Satya Nadella need to whine about Nokia's acquisition.

2. avinash22i

Posts: 72; Member since: Nov 07, 2013

It was nice Knowing YA!!!

3. Moose

Posts: 418; Member since: Jan 05, 2015

Too bad that Microsoft isn't creative enough in their thinking to develop new businesses and products organically so they have to take over good independent services like Skype and LinkedIn. Can't see them getting full value out of their enormous investment in LinkedIn.

4. Zack_2014

Posts: 677; Member since: Mar 25, 2014

Who even uses Linkedin?

7. arenanew

Posts: 286; Member since: Dec 30, 2013

WHO USE ANDROI?

11. elitewolverine

Posts: 5192; Member since: Oct 28, 2013

People who don't want their business profile to be a kiddy facebook page with endorsed user workers.

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

millions of people

5. Angst

Posts: 35; Member since: Apr 29, 2014

well let's see, passively, literally anyone who has an office job. Anyone and just about everyone I've known professionally for the past 26 years is either actively or passively still using linkedIn and is linked to me in some size shape and/or way (well over 333 connections) and I get connection requests or skill/job changes at least weekly from that pool or additions from employees globally from my current employer.

6. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Was it actually worth that much? Microsoft has that kind of money laying around?

9. GreenMan

Posts: 2697; Member since: Nov 09, 2015

Apparently... It's Mr, Bill 'Billy' Gates we are talking about here, after all!

14. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Woh, I would never have expected that. Such desperation to learn about everyone...must be making their own version of google+. Fortunately I only put what I'm willing to share with the entire world on LinkedIn, couldn't care less if they know I'm an Electrical Engineer...

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