Microsoft Buys LinkedIn for $26.2 Billion

The IT Giant Microsoft has announced to buy LinkedIn which is considered to be the Social Network for the professionals. On Monday, Microsoft announced that they have done a agreement with LinkedIn, according to which they will acquire LinkedIn for 196$ per share in all cash transaction of total $26.2 billion.

LinkedIn, founded in December 2002 by Reid Hoffman is a Social Network especially for the Business Community. It allows members to make connection b/w each other. As of 2016, LinkedIn has more than 400 Million registered users. As of 2016, the company has also about 9200 employees. It has been proved an essential tool for job seekers and business professionals.

On the other side, Microsoft founded on 1975 by Bill gates and Paul Allen is the world leading company which develops computer software, hardware. It is specially famous for its Operating system, office suites etc. Satya Nadella is the current CEO of Microsoft. As of 2016, Microsoft has around 196 subsidies including popular video calling software Skype, Nokia, Hotmail, etc.

After this deal,CEO of LinkedIn, Jeff Wiener will remain at this post for LinkedIn, but now he will not be the boss instead he will report to the Boss(CEO) of the Microsoft Satya Nadella.

Statement Given by Satya Nadella and LinkedIn CEO Confirms this deal.

"Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet." Satya Said

"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 also to change the way the world works.For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story" Weiner said.

The deal is approved by the LinkedIn and Microsoft Board Directors.Although the deal is still to have get approval from the LinkedIn shareholders.In addition to that, the deal is expected to complete at the end of this year.

With this Agreement, LinkedIn With its Subsidiaries Companies including Lynda.com and Slideshare will be owned by Microsoft.

Before this deal, Microsoft, who always remain one step ahead in term of his software services, has never been successful in social networking, so it is clear that Microsoft is looking to extend it' circles by making communication and collaboration easy and to increase its company portfolio.

Now hope is that Microsoft will not destroy this purchase as they did it with their many previous purchases including Nokia!