There has been a huge fuss the past few days, saying that Microsoft will buy LinkedIn. Making the rumors true, Microsoft Corporation and LinkedIn Corporation on Monday announced that they have entered into a definitive agreement, under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion.
The statement specific said that LinkedIn will retain its distinct brand, culture and independence. Jeff Weiner will remain CEO of LinkedIn reporting to Satya Nadella, the Microsoft CEO. The transaction is expected to close this calendar year. Nadella stated: "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 organization on the planet."
Specifically, LinkendIn is known to be the world's largest and most valuable professional network. Over the past year, the company has launched a new version of its mobile app that has led to increased member engagement. The deal is a way for Microsoft, which largely missed out on the consumer Web boom dominated by the likes of Google and Facebook Inc., to sprint ahead in social tools -– in this case, for professionals. While Chief Executive Officer Satya Nadella has drawn kudos for efforts to reshape the company and reignite sales growth, the board is urging an even faster shift toward software and services delivered over the Internet.