Microsoft to buy LinkedIn

Microsoft Corporation and LinkedIn Corporation announced this morning, Microsoft is acquiring the assets of the popular business social network for $26 billion dollars. Microsoft's purchase price marks a 50 percent premium over Friday's closing price and is about double the stock's low in February.

Reid Hoffman, LinkedIn's board chairman and controlling shareholder, called the acquisition a "refounding moment" for the website. In his letter to Microsoft employees, CEO Satya Nadella remarked on the potential synergies between his company's business and productivity software and cloud services offerings and LinkedIn's impressive reach.

The deal gives Microsoft the largest social media platform for people looking to network with others in and around their professions - frequently to help them find jobs.

Microsoft's move on LinkedIn is big news for the social networking sector.

Weiner said his vision is to operate LinkedIn as a fully independent entity within Microsoft, a model used with great success by companies like YouTube, Instagram and WhatsApp.

The deal, expected to close within this year, works out to over $60 per LinkedIn user.

KitGuru Says: It will be interesting to see how Microsoft makes use of LinkedIn.

Nadella also said he thought LinkedIn would be a good fit for Microsoft's business software packages like Office, helping bring businesses and professionals together to encourage collaboration - which has been a major focus of Microsoft with recent software releases.

Meanwhile, LinkedIn can expand its recruiting, advertising and sales programs though Microsoft's extensive business and consumer connections. Meanwhile, Microsoft lost around 3.3 percent. LinkedIn lost $166 million in 2016, and hasn't had a profitable year since 2013.

"However, this deal clearly shows Microsoft is prepared to go back to its roots and bolster its original mission: to empower every person and organisation to achieve more", concluded Domberger.

The post also notes the company's year over year (YOY) growth in unique visiting members per month, mobile usage, page views, and job listings.

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