Microsoft on Monday announced that it had agreed to acquire LinkedIn, the world’s largest professional network, for $196 per share in an all-cash transaction valued at $26.2 billion. Microsoft promised that LinkedIn would retain its distinct brand, culture and independence with Jeff Weiner remaining CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. The transaction is expected to close this calendar year.
In its acquisition announcement, Microsoft pointed out some interesting stats regarding LinkedIn’s membership, engagement and financial results, specifically:
- 19% growth year over year (YOY) to more than 433 million members worldwide
- 9% growth YOY to more than 105 million unique visiting members per month
- 49% growth YOY to 60 percent mobile usage
- 34% growth YOY to more than 45 billion quarterly member page views
- 101% growth YOY to more than 7 million active job listings
Satya Nadella, CEO of Microsoft said of the deal
The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.
Jeff Weiner, CEO of LinkedIn commented:
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. 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.
Microsoft said it would finance the transaction primarily through the issuance of new debt. As of writing, shares of the LinkedIn Corporation (NYSE: LNKD) have jumped 47%.