Microsoft Corp has decided to buy LinkedIn Corp, the world's largest and most valuable professional network, for $196 per share or Rs26.2 billion in an all cash deal. Jeff Weiner will remain chief executive of LinkedIn and will report to Satya Nadella, CEO of Microsoft. The transaction is expected to close this calendar year. The all-cash transaction valued at $26.2 billion, includes LinkedIn’s net cash.
"The LinkedIn team has grown a fantastic business centred on connecting the world's professionals," Nadella said in a release. "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," he added.
Microsoft will finance the transaction primarily through the issuance of new indebtedness. Upon closing, Microsoft expects LinkedIn's financials to be reported as part of Microsoft's Productivity and Business Processes segment. Microsoft expects the acquisition to have minimal dilution of about 1% to non-GAAP earnings per share for the remainder of fiscal year 2017 post-closing and for fiscal year 2018 based on the expected close date, and become accretive to Microsoft's non-GAAP earnings per share in Microsoft's fiscal year 2019 or less than two years post-closing.
"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," Weiner said.
LinkedIn, which has over 400 million members and office around the globe, connects the world's professionals to make them more productive and successful and transforms the way companies hire, market, and sell.