United States: The social media platform for professionals LinkedIn is going to be bought by Microsoft Corp for a hefty $26.2 billion in cash.
According to reports Microsoft is about to finish a deal to acquire LinkedIn Corp which is a social networking company for professionals for $26.2 billion in cash in order to make its products more connected.
A representative from Microsoft said “LinkedIn will retain its distinct brand, culture and independence” while the Chief Executive of LinkedIn Jeff Weiner said “ the deal gives us a chance to change the way the world works”.
There are more than 430 million members of LinkedIn worldwide and each member has been valued at $60 each. In 2011 the value of LinkedIn was estimated at $4.25 billion and it was launched in 2003.
When the deal is completed the chief executive of LinkedIn Jeff Weiner will report directly to Satya Nadella who is Microsoft boss. In a statement Nadella said “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 organisation on the planet.”
Reid Hoffman who is the co-founder of LinkedIn looked at the deal in a very positive way and said this deal is a re-founding moment for LinkedIn.
It should be noted that LinkedIn was hit with major losses prior to this deal it’s shares plunged 43%, this collapse in price erased $11 billion from its value in just one day.
Expectations are that the deal will be finalized and completed by the end of this year as it has already been approved by the board’s of both Microsoft and LinkedIn.