© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Microsoft to Acquire LinkedIn
Posted 13th June 2016

Microsoft to Acquire LinkedIn

Microsoft Corp. (Nasdaq: MSFT) and LinkedIn Corporation (NYSE: LNKD) on Monday announced they have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn's net cash.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Microsoft to Acquire LinkedIn
Image

Microsoft Corp. (Nasdaq: MSFT) and LinkedIn Corporation (NYSE: LNKD) on Monday announced they have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash. LinkedIn will retain its distinct brand, culture and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction. The transaction is expected to close this calendar year.

LinkedIn is the world’s largest and most valuable professional network and continues to build a strong and growing business. Over the past year, the company has launched a new version of its mobile app that has led to increased member engagement; enhanced the LinkedIn newsfeed to deliver better business insights; acquired a leading online learning platform called Lynda.com to enter a new market; and rolled out a new version of its Recruiter product to its enterprise customers. These innovations have resulted in increased membership, engagement and financial results, specifically:

19 percent growth year over year (YOY) to more than 433 million members worldwide;

9 percent growth YOY to more than 105 million unique visiting members per month;

49 percent growth YOY to 60 percent mobile usage;

34 percent growth YOY to more than 45 billion quarterly member page views;

101 percent growth YOY to more than 7 million active job listings.

“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “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.”

“Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works,” Weiner said. “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.”

The transaction has been unanimously approved by the Boards of Directors of both LinkedIn and Microsoft. The deal is expected to close this calendar year and is subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.

“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,” said Hoffman. “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.”

Microsoft will finance the transaction primarily through the issuance of new indebtedness. Upon closing, Microsoft expects LinkedIn’s financials to be reported as part of Microsoft’s Productivity and Business Processes segment. Microsoft expects the acquisition to have minimal dilution of ~1 percent to non-GAAP earnings per share for the remainder of fiscal year 2017 post-closing and for fiscal year 2018 based on the expected close date, and become accretive to Microsoft’s non-GAAP earnings per share in Microsoft’s fiscal year 2019 or less than two years post-closing. Non-GAAP includes stock-based compensation expense consistent with Microsoft’s reporting practice, and excludes expected impact of purchase accounting adjustments as well as integration and transaction-related expenses. In addition, Microsoft also reiterated its intention to complete its existing $40 billion share repurchase authorization by Dec. 31, 2016, the same timeframe as previously committed.

Morgan Stanley is acting as exclusive financial advisor to Microsoft, and Simpson Thacher & Bartlett LLP is acting as legal advisor to Microsoft. Qatalyst Partners and Allen & Company LLC are acting as financial advisors to LinkedIn, while Wilson Sonsini Goodrich & Rosati, Professional Corporation, is acting as legal advisor.

Categories: M&A, Strategy


You Might Also Like
Read Full PostRead - Eye Icon
Why Companies Are Switching To Virtual Payment Cards
Strategy
10/01/2023Why Companies Are Switching To Virtual Payment Cards

Technological advancements led to the evolution of payment options, specifically virtual payment cards. Many companies have recently started incorporating virtual payment cards into their operations. Most consider it a way to streamline the purchasing process

Read Full PostRead - Eye Icon
Proven Pedal Power!
Strategy
14/10/2021Proven Pedal Power!

As the world looks for green solutions, local governments around the world have been investigating ways of making their communities more environmentally friendly. PBSC Urban Solutions is a Canadian innovation that has grown into an astonishing success which le

Read Full PostRead - Eye Icon
Plant-Powered Biotech Beauty
Innovation
21/02/2022Plant-Powered Biotech Beauty

Codex Beauty Labs is a biotech company grounded in science, dedicated to supporting microbiome. Its pioneering cruelty-free products are clinically-proven to provide meaningful benefits.

Read Full PostRead - Eye Icon
Space Industry: An Investment Guide for Entrepreneurs
News
02/10/2023Space Industry: An Investment Guide for Entrepreneurs

As space exploration continues to captivate the world’s imagination, being a part of this journey offers the chance to contribute to the progress of humanity’s cosmic frontiers and potentially reap the rewards of this innovative market.  In th

Read Full PostRead - Eye Icon
6 Tips To Enhance Commercial Fleet Sustainability
Strategy
10/01/20236 Tips To Enhance Commercial Fleet Sustainability

More and more, the idea of making business socially responsible has become urgent in light of the looming crisis. As the push to become eco-friendly intensifies, making commercial fleets sustainable is becoming the norm, especially for those of a considerable

Read Full PostRead - Eye Icon
Women in fintech: Wonga’s Women disrupting the industry status-quo.
News
11/11/2024Women in fintech: Wonga’s Women disrupting the industry status-quo.

The fintech industry’s gender imbalance has been well-documented, with report data from the Bank for International Settlements highlighting significant disparities in both industry participation and service usage. Against this backdrop, Wonga has emerged

Read Full PostRead - Eye Icon
Making Investment Magic in the Mid-Market
Finance
07/06/2017Making Investment Magic in the Mid-Market

a2e Industries are an innovative, Manchester based investment firm focusing on mid-market firms. We profile the firm and examine its dedication to creating shareholder value.

Read Full PostRead - Eye Icon
Bridging Success in 2015
Strategy
31/01/2015Bridging Success in 2015

There is currently a huge appetite for short- and medium-term property loans across the UK, and Dragonfly Property Finance is leading the way.

Read Full PostRead - Eye Icon
3 Ways To Properly Monitor Your Small Business Books
News
04/02/20223 Ways To Properly Monitor Your Small Business Books

3 Ways To Properly Monitor Your Small Business Books Good bookkeeping skills are the foundation of any successful business. However, due to their overloaded schedule, many small business owners put off bookkeeping and accounting for as much as they can. Howeve



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have a number of unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow