Microsoft
The ticker symbol and trading information for Microsoft Corp. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 13, 2016. Reuters/Brendan McDermid

Microsoft (Nasdaq: MSFT) will acquire business social networking site LinkedIn (NYSE: LNKD) for US$196 (AU$265) per share, or US$26.2 billion (AU$35.4 billion) value. LinkedIn will retain its independence, with CEO Jeff Weiner remaining on his post and reporting to Microsoft CEO Satya Nadella. The deal is expected to be completed this calendar year.

The transaction has been approved by the Board of Directors of both companies, and is still subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other conditions.

“The LinkedIn team has grown a fantastic business centred on connecting the world’s professionals,” Nadella said in a statement. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organisation 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 added. “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.”

In his email to employees (via Business Insider), Nadella lauded the opportunity the acquisition would bring for Microsoft Office 365 and Dynamics. He hoped to reinvent user process through the products, saying the software combined with LinkedIn’s network could reinvent selling, marketing and talent management business processes while making professionals more productive.

Weiner’s email to employees, on the other hand, explained why Microsoft is the best choice for LinkedIn. According to him, both companies are aligned on two things: purpose and structure.

“Essentially, we’re both trying to do the same thing but coming at it from two different places: For LinkedIn, it’s the professional network, and for Microsoft, the professional cloud,” the email reads.

According to Business Insider, LinkedIn shares jumped more than 47 percent following the announcement of the acquisition. Microsoft shares, meanwhile, have fallen 4 percent.


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