Microsoft has declared that it will acquire LinkedIn, a professional networking service with over 106 Million active users (as on March 2016), for $26.2 Billion.
Founded in 2002, the entity came into the existence on May 5, 2003. In these thirteen years, LinkedIn has managed to evolve as an online social network and as an organization.
As per the data of March 2016, the site has more than 400 Million users, out of which more than 106 Million users are active. The site is a multilingual and available in 24 different languages that also includes Arabic, Polish, Indonesian, Malay, and Tagalog.
The company filed for an initial public offering in January 2011 and traded its first shares on May 19, 2011, underneath of NYSE symbol “LNKD”, at $45 per share . And shares of LinkedIn rose over 171 percent in their first day of trade on the NYSE (New York Stock Exchange) and closed at $94.25, more than 109 percent above IPO price.
Here are the five facts related to the Microsoft-LinkedIn Deal:
1. Microsoft and LinkedIn Corp have entered into a conclusive agreement under which Microsoft will acquire LinkedIn for $26.2 Billion inclusive of LinkedIn’s net cash. The deal is set for an all-cash transaction at $196 per share at a premium of 49.5% from Friday’s close on NYSE.
2. Jeff Weiner, the existing CEO OF LinkedIn, will remain the executive officer and report to Satya Nadella (Microsoft’s CEO). The transaction, which is expected to close this calendar year, has received the consent from both the parties, Microsoft and LinkedIn.
3. This is the biggest acquisition by Microsoft since Satya Nadella took over as the CEO of the company. Having said that, as per the joint statement made on Monday “LinkedIn will retain its distinct brand, culture, and independence”.
4. Microsoft said it would issue a new debt to finance the transaction. In addition to this, Morgan Stanley is acting an exclusive pecuniary advisor to Microsoft while Allen & Company LLC and Qatalyst Partners are acting as advisors to LinkedIn on the deal.
5. In an interview, Nadella disclosed that he have been talking with Reid and Jeff for a while…he have been thinking about the deal for a long time. Adding to this, after the deal, LinkedIn will become part of Microsoft’s productivity and business processes unit, the companies said.
Sources: The Economic Times