Microsoft to Acquire LinkedIn For $26 Billion

Microsoft announced this morning it is acquiring LinkedIn for $26 billion, or $196 per share. The all cash deal was finalized June 11th and has already been approved by both boards of directors.

The transaction, which is expected to close this year, has to be approved by LinkedIn shareholders. A meeting and vote could be held as early as mid-July. The deal is also subject to government review.

Shares of LinkedIn skyrocketed $61 a share to $193 after the announcement, while Microsoft’s stock was down about 3%. Trading in Microsoft was halted briefly before the announcement.

According to the press release from Microsoft, 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 LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said in the press release. “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 deal is expected to close this calendar year, subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.

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“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.

LinkedIn released a video on the acquisition featuring Nadella and Weiner earlier this morning.

https://youtu.be/-89PWn0QaaY

Shannon Pritchett is the editor of SourceCon. As a lifelong student in the recruitment industry, Shannon is passionate about improving it. Shannon has a diverse background in training, sourcing, international recruitment, full desk recruiting, coaching, and journalism. Shannon got her start in the recruitment industry at Vanderbilt University and later worked as a Senior Recruiter for Internal Data Resources and Community Health Systems, Social Media Recruitment Ambassador for T-Mobile USA, Director of Recruiting for Moxy, Trainer with AIRS, and last as a Manager of Global Sourcing and Training for ManpowerGroup Solutions RPO.

John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.

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