Industry News

Microsoft to acquire LinkedIn for $26.2 Billion

United States: Microsoft, a U.S. technology giant made a major announcement that it is acquiring LinkedIn Corp. for $196 per share; all cash transaction valued at $26.2 billion and it is expected to close the deal by the end of the year 2016. 

LinkedIn is the world’s largest professional network with more than 433 million members in 200 countries and more than 60 percent of the traffic on mobile.

In this deal, LinkedIn will still be keeping its brand image, culture, and independence. However, will become the part of the Microsoft business segment. In addition, LinkedIn CEO Jeff Weiner will remain CEO of LinkedIn and will be reporting to Satya Nadella, as well as the employees of LinkedIn, will have the same titles and managers.

Further, after the announcement of the big deal the share of the LinkedIn surged 47 percent while Microsoft's stock was down 3.2 percent.

LinkedIn is the world’s largest professional network by having more than 400 million members along with various innovations it has increased its membership, engagement, and financial results. With this acquisition, Microsoft will accelerate the growth of LinkedIn, as well as Microsoft Office 365.  

A global consulting and market research firm, TechSci Research analyses that through this acquisition Microsoft will able to strengthen its foothold in enterprise social networking and with the help of LinkedIn sales and business development human resources their products will sell under the business unit called “Selling to ‘Social Selling’” which is expected to enhance the company overall revenue.

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