Microsoft Buys LinkedIn for $26.2 Billion

LinkedIn Corp. has agreed today to be acquired by Microsoft Corp. in an all-cash deal valued at $26.2 billion. In a surprise move, this deal could bring subtle but substantial changes for the more than 430 million members of the professional networking company. 

Mountain View, California-based LinkedIn will remain independent of Microsoft, as it keeps its name and current CEO Jeff Weiner will stay and report directly to Microsoft CEO Satya Nadella. LinkedIn lets its members network with other professionals, upload their resumes, gain career advice, and search for jobs.

This deal allows the Redmond, Washington-based Microsoft to cement itself as the leading tech company for the world’s professionals. Microsoft will look to combine their software with the information in LinkedIn’s online professional network to give users an experience like never before.


For example, Microsoft’s digital assistant Cortana could use LinkedIn data before a meeting to inform you of all the people you have never met and the connections that you have with them. This merging of technologies can transform what is possible, especially in the business world, in the ever-connected world we live in today.

This acquisition is by far the biggest for Microsoft, much larger than Skype, which the company bought for $8.5 billion in 2011. LinkedIn said it agreed to sell for $196 a share, a near 50 percent premium on its closing price of $131.08 on Friday. Other acquisitions of Microsoft haven’t faired too well, as they have put more than $10 billion into companies such as Nokia and online ad firm aQuantive, however Skype and Minecraft have been quite successful for Microsoft.

LinkedIn (NYSE:LNKD) shares skyrocketed 47 percent to $192.50 in midday trading. Microsoft (NASDAQ:MSFT) shares are down almost 3 percent at $50.10.