Shares of LinkedIn Corp. jumped nearly 50% Monday after the company said Microsoft will buy it in a $26.2 billion deal that would merge Microsoft’s enterprise cloud services with the professional social network.
The all-cash transaction amounts to $196 a share, a 50% premium to Friday’s closing price.
Here 10 things about Microsoft-LinkedIn
1.Microsoft and LinkedIn Corp have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $26.2 billion
2.The deal is an all-cash transaction at $196 per share at a premium of 49.5% from Friday’s close.
3.Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.
4. The transaction, which is expected to close this calendar year, has received unanimous approval of both LinkedIn and Microsoft’s board.
5.”LinkedIn will retain its distinct brand, culture and independence” a joint statement said on Monday.
6.Microsoft will finance the transaction primarily through the issuance of new debt.
7.Deal to become earnings accretive to Microsoft’s non-GAAP earnings per share in Microsoft’s fiscal year 2019 or less than two years post-closing
8.This is the largest deal under Satya Nadella’s tenure as CEO, who has been increasing Microsoft’s appeal more to business customers with cloud-based services and productivity tools.
9.Morgan Stanley is acting as exclusive financial advisor to Microsoft while Qatalyst Partners and Allen & Company LLC are acting as financial advisors to LinkedIn.
10.Before LinkedIn’s 2011 public listing, Microsoft entered into talks to buy LinkedIn several times
LinkedIn Chairman Reid Hoffman called the transaction a “re-founding moment” for the company, which went public in May 2011 at $45 per share. Let’s see what will be other benefits for the both companies in near future.