Monday, 13 June 2016

Microsoft to buy LinkedIn for $26.2 Billion

Microsoft Corp. agreed to buy LinkedIn Corp for $26.2 Billion in its biggest ever deal, combining the software giant fast growing cloud service business with an online network of 433 million professionals. The offer of $196 per share represents a premium of 49.5% to LinkedIn Friday closing price.
Microsoft plans to speed-up monetization of LinkedIn by growing individual and organization subscriptions as well as targeted advertising. Despite the rich premium paid by Microsoft, LinkedIn is selling for well below its peak of more than $270 per share in 2015, but a weak forecast earlier this year sent its shares tumbling and slowing online ad revenue. LinkedIn went public in 2011 at $45.

LinkedIn is the world’s largest and most valuable professional network and continues to build a strong and growing business. Over the past year, the company has launched a new version of its mobile app that has led to increased member engagement, enhanced the LinkedIn newsfeed to deliver better business insights, acquired a leading online learning platform called Lynda.com to enter a new market and rolled out a new version of its recruiter product to its enterprise customers. 

No comments: