Microsoft will be $ 26.2 billion acquisition of LinkedIn brands remain independent

Microsoft announced on Monday, will be $ 26.2 billion cash acquisition of LinkedIn. This is the largest acquisition in Microsoft’s history.

Microsoft said in a blog, will be $ 196 per share in cash LinkedIn. After completion of the transaction, Microsoft will continue to retain LinkedIn brand, culture and independence, while Jeff Vernal (Jeff Weiner) will continue to serve as CEO, to Microsoft CEO Satya Nadella (Satya Nadell) reporting.

LinkedIn chairman Reid Hoffman (Reid Hoffman) said in a statement: “Today Linkedin is a time of rebirth.” Hoffman said that he fully supported the deal.

Microsoft CEO Satya Nadella (Satya Nadell) said: “I have been bullish on LinkedIn, on the acquisition, we had a long talk.”

Microsoft said it will complete the transaction by strengthening personal and business subscription services, as well as accurate advertising services to accelerate the commercialization of LinkedIn.

Although the offer of $ 196 per share, compared to Friday’s closing price premium LinkedIn nearly 50%, but much lower than LinkedIn 2015 Nian hit a record of more than 270 US dollars. LinkedIn 2011 listing, the issue price was only $ 45.

Tigress Financial Partners analyst Ivan Feiensaisi (Ivan Feinseth) said: “LinkedIn is a great company, despite the recent sluggish performance, but Microsoft gives high worth.”

Microsoft said it would finance the deal to come through the issuance of new debt. Both sides expect the deal expected to be completed before the end of this year. By then, LinkedIn will be integrated into Microsoft’s “productivity and business processes” department.

Affected by the news, shares rose before LinkedIn disc nearly 50% to $ 194.5, LinkedIn market capitalization of $ 17.51 ​​billion; while Microsoft shares fell 0.35% premarket slightly to $ 51.3.

Career networking site LinkedIn put into operation in 2003. In 2013, the company listed on the NYSE, financing amounted to $ 1.2 billion when the market. As of the last fiscal quarter (March 2016), LinkedIn in the global total of 106 million active users.

In this regard, Techcrunch published article commented that this is a win-win deal.

Article, whether it is for Microsoft or LinkedIn, the deal were significance. For Microsoft, the deal will a core, has not yet been incorporated into the company’s business strategy, so as to provide a wider range of business services.

Social networking services and professional content, LinkedIn will make Microsoft’s broader service coverage. In addition, LinkedIn social network also gives Microsoft a potential sales channels.

In addition, some acquisitions LinkedIn were also attractive to Microsoft. For example, LinkedIn provides online learning tools through acquisitions Lynda.com for the user. Microsoft can guide users through the deployment of such tools on how to use their own software products, so as to further promote product sales.

For LinkedIn, after being acquired by Microsoft, some of the problems currently facing the company will be relieved. For example, how to compete with rivals, users and revenue growth slow, and shares fell problems.

Of course, the deal is not entirely going downhill on a company to find a backer. Although the company’s share price is currently lower than the $ 258 12-month record high, but LinkedIn is still a good performance of listed technology companies.

In the field of social networking, Microsoft has never made too much of a victory, and LinkedIn help make Microsoft occupies an important place in this area.

Finding electronic components, www.jitcomp.com is a specialized web for obsolete and hard to find electronic components,most of components types found at our web, such as: 42tl016 and RK73K1ETTP2004F, visit our website for more components which your need to buy.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>