Microsoft Set to Acquire LinkedIn for $26.2 Billion in Cash

Microsoft has reached an agreement to acquire LinkedIn for $26.2 billion in cash. The deal would be the largest in Microsoft’s history, dramatically expanding the company’s reach with ownership of the dominant business social network, with more than 433 million members.

LinkedIn, based in Mountain View, Calif., “will retain its distinct brand, culture and independence,” the companies say in a news release. “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.”

The purchase price translates into $196 a share, representing a 50 percent premium over LinkedIn’s closing share price on Friday. LinkedIn’s stock is approaching the level of the purchase price in pre-market trading this morning.

Microsoft touts the deal as a combination of the world’s leading professional cloud and the leading professional network.

Hoffman said in a statement, “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. 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.”