Earlier today, Microsoft announced that it has agreed to acquire professional networking platform LinkedIn in an all-cash deal worth $26.2 billion. Microsoft will pay $196 per share, representing a lofty 50 percent premium over the price that LinkedIn’s shares closed at last Friday.
After a very successful first couple of years as a public company, LinkedIn had recently fallen out of favor with investors after giving a cautious outlook for the near-term future. In February, the company’s share price plummeted by more than 40 percent in a single day and, until today's news, had not recovered from the sell-off.
The deal would “bring together the world’s leading professional cloud with the world’s leading professional network”, Microsoft’s CEO Satya Nadella said in a letter to his employees. LinkedIn will maintain its brand and the company’s CEO Jeff Weiner will remain at the helm of the social network for professionals.
Microsoft to Acquire LinkedIn at a Premium
Description
This chart shows LinkedIn's share price from its IPO in 2011 to its acquisition by Microsoft in June 2016.
