Microsoft announced today that it is buying LinkedIn, the social media platform for professionals. The deal is worth $26.2 billion, and is expected to be closed during this fiscal year, following approval by LinkedIn’s shareholders and the satisfaction of a few regulations.
According to Microsoft's announcement, LinkedIn will keep its 'distinct brand, culture and independence', and Jeff Weiner will remain its CEO. He will just have to report to Satya Nadella, Microsoft's CEO, and Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, from now on.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “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.”
Microsoft will finance the deal by issuing new indebtness, it was said. A joint conference call with investors will be held by the two companies today, at 5PM London time.
Microsoft said it expects the acquisition to have 'minimal dilution' of ~ 1 per cent to non-GAAP earnings per share for the remainder of the fiscal 2017.
The company explained LinkedIn was an attractive purchase, showing how the company made impressive progress in the past period. It managed to grow 19 per cent year-on-year in terms of members, and now has 433 million members, globally. It has 105 million unique monthly visits, a nine per cent year-on-year growth.
It also enjoyed a 49 per cent year-on-year growth in mobile usage, jumping to a total of 60 per cent.
“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. “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.”
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