Microsoft has officially declared that it has agreed to acquire LinkedIn, the professional social networking site for $26.2 billion in cash or $196 per share value. The LinkedIn has more than 400 million users, based on the report published on April 2016.
Microsoft has said in a message that they are offering $196 per share which stand for a premium of 49.5 percent to LinkedIn’s Friday concluding price. The dealing has already been authorized by the both boards, yet it will take a time to get regulatory and other legal approvals. Although, this deal is expected to complete in 2016.
Reid Hoffman, who is the chairman of LinkedIn’s board, talked about this deal and said ‘Today is a re-founding moment for LinkedIn.” The chief executive of LinkedIn, Jeff Weiner will hold his position and will report directly to Satya Nadella, the CEO of Microsoft. By any chance, if the deal does not work for any reason then LinkedIn will have to pay off $725 million USD as termination fee to Microsoft.
The acquisition is huge for both companies but LinkedIn will keep its branding and product. Microsoft will get the core social networking services as well as professional content from LinkedIn and will use it for developing more services for enterprises.