Microsoft is scooping up LinkedIn in one of the biggest tech mergers to date. The deal will cost Microsoft $26.2 billion, or $196 per share, all cash. This is Microsoft’s largest ever acquisition.
LinkedIn has a prestigious history. At one point it was the best-performing social network in the stock market, until it was beat out by Facebook. It has a base of 433 million members across the globe, and last year has a revenue growth of 35 percent, reaching $3 billion.
Microsoft plans on using LinkedIn’s database of professional information as a distribution program for its software systems. In return, LinkedIn will gain additional financing and access to millions of people who could join its network.
How might the LinkedIn data help you? Well, say you’re a sales rep using Outlook to compose emails. You could look up the information of someone you’re pitching to while writing the email, without having to leave the window.
If you’re a loyal member of LinkedIn, don’t fret. The service will continue as normal after the deal is closed. Jeff Weiner, LinkedIn’s CEO, is keeping his job and will be reporting to Microsoft CEO Satya Nadella.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella was quoted as saying in a CNN story. “Together we can accelerate the growth of LinkedIn, as well as Microsoft 365.”