Microsoft adds a new chapter to LinkedIn’s Story!

Microsoft and LinkedIn, both these companies being US headquartered, have become of the news of the moment. Well, both these companies created a buzz after their recent announcement that states the duo has entered into a definitive agreement. And under this agreement, Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction, which is valued at $26.2 billion, inclusive of LinkedIn’s net cash. It is reported that Microsoft will fund the transaction mainly through the issuance of new indebtedness.

Even after the acquisition, Jeff Weiner will continue being the CEO of LinkedIn, reporting to the CEO of Microsoft, Satya Nadella. In addition, Reid Hoffman (Chairman of the board, co-founder and controlling shareholder, LinkedIn), and Weiner both fully support this transaction. It is expected for the transaction to be closed this calendar year.

JOINT CALL CONFERENCE WITH INVESTORS TODAY.

According to the news, Microsoft and LinkedIn will host a joint conference call with investors. Eastern Time to talk over this transaction, and this call will be available via webcast at https://www.microsoft.com/en-us/Investor.  It is also reported that this call is to be hosted by the CEO’s of both the giants, Nadella and Weiner, as well as Microsoft Chief Financial Officer (CFO) Amy Hood and Microsoft President and Chief Legal Officer Brad Smith.

Similarly, Morgan Stanley would be acting as the exclusive financial advisor to Microsoft, and Simpson Thacher& Bartlett LLP would be acting as Microsoft’s  legal advisor. At the same time, Qatalyst Partners and Allen & Co. would be acting as LinkedIn’s financial advisors , while Wilson Sonsini Goodrich and  RosatiProfessional Corporation, will be acting as legal advisor to LinkedIn.

About LinkedIn

Though, LinkedIn was founded in December 2002, it was officially launched in May 2003. Though, LinkedIn is primarily used for professional networking, It has above 400 million users altogether, out of which above 106 million users are active.

About Microsoft

Founded in April 1975 by Paul Allen and Bill Gates, Microsoft is a tech MNC that develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services. Some of Microsoft’s notable software products include Microsoft Office, Internet Explorer, Microsoft Windows line of operating systems etc.

Last year, LinkedIn had raised eye-brows of its investors with its largest acquisition till date i.e $1.5-billion purchase of Lynda.com – an instructional video site. Likewise, it has acquired many companies like Fliptop, Refresh.io, Careerifyetc during the past year. At the same time, Microsoft had recently acquired an Italy-based IOT platform, Solair. With the recent news, Microsoft adds one more chapter to its history and LinkedIn puts a full stop to their success story.

Takeaways :-

• Linkedin and Microsoft’s recent announcement states that they have entered into a definitive agreement. And under this agreement, Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction, which is valued at $26.2 billion, inclusive of LinkedIn’s net cash.
• Microsoft will fund the transaction mainly through the issuance of new indebtedness.
• Microsoft and LinkedIn will host a joint conference call with investors. Eastern Time to talk over this transaction, and this call will be available via webcast at https://www.microsoft.com/en-us/Investor