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You Won’t Believe How Much Microsoft Paid To Buy LinkedIn! Check It Out!

You Won’t Believe How Much Microsoft Paid To Buy LinkedIn! Check It Out!

On Monday, LinkedIn Corporation and Microsoft Corp announced about entering into an agreement under which LinkedIn would be acquired by Microsoft at a cost of $196 per share in an all-cash transaction, the value of which was $26.2 billion i.e. Rs 1,75,802 Crore, inclusive of the net cash of LinkedIn. LinkedIn would be retaining its independence, culture and distinct brand. Jeff Weiner would maintain his CEO position in LinkedIn and would report to Microsoft’s CEO, Satya Nadella. This transaction is completely supported by Weiner and Reid Hoffman, the controlling shareholder, co-founder and chairman of the board of LinkedIn. It is expected that the transaction would be closing this calendar year.

LinkedIn is the largest professional network all across the globe and last year, it had launched a mobile application, which increased member engagement. Then it acquired Lynda.com, an online learning platform. All this had led to increased membership.

Nadella stated that,

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.

The Board of Directors of Microsoft and LinkedIn have approved this transaction. However, the deal is subject to approvals by the shareholders of LinkedIn and other regulatory approvals.

Hoffman says,

Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business. I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.

LinkedIn and Microsoft would be hosting a joint conference call with investors on the 13th of June 2016 at 8.45 a.m. Pacific Time/ 11.45 a.m. Easter Time for having discussions about the transaction. This call would be hosted by the Chief Legal Officer and President of Microsoft, Brad Smith, Amy Hood, the Chief Financial Officer of Microsoft, Weiner and Nadella.

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