In what is set to be the most significant tech mergers of all time, Microsoft will acquire LinkedIn for a staggering $26.2 billion. On Monday, Microsoft decided to buy LinkedIn by paying $196 per share which is 50% more than the closing price at the end of the day on Friday. Following the announcements, LinkedIn stocks rose near to that of the purchasing price while the shares of Microsoft slipped by 4%.
Microsoft, the global force in computer systems seems to expand its presence in social media. LinkedIn’s business is a sizable one with $3 billion in the last year, 35% up from last year. With 433 million members worldwide. It is one of the world’s biggest network.
The LinkedIn brand will continue to live on even after this acquisition as Jeff Wiener will remain the CEO will remain as CEO of LinkedIn but reporting to Microsoft CEO Satya Nadella. This will be the 5th largest tech deal in the history, but it will soon be dwarfed by a whopping $67 billion purchase of EMC by Dell which is yet to be announced.
Reid Hoffman, co-founder and chairman of LinkedIn and also one of the shareholders of the company, will get $2.9 billion for the sale of his shares. The jump in LinkedIn’s shares early Monday increased his net worth by %900 million.