Microsoft to buy LinkedIn for $26.2 billion in cash, LinkedIn shares jump 47%

Huge news today in the world of M&A in enterprise and social networking services: Microsoft has announced that it is acquiring LinkedIn, the social network for professionals with some 433 million users, for $26.2 billion, or $196 per share, in cash. The transaction has already been approved by both boards, but it must still get regulatory and other approvals.

Microsoft to buy LinkedIn for $26.2B in cash makes big move into enterprise social media

If for some reason the deal does not go through, LinkedIn will have to pay Microsoft a $725 million termination fee.

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The $196 per share offer is a big hike on its closing price from Friday, $131.08. (And in pre-market trading, unsurprisingly, LinkedIn’s stock has nearly crept up 64 percent to reach the share price Microsoft is paying. Microsoft’s price is down 4 percent to $49.66 in pre-market trading.)

LinkedIn is keeping its branding and product, and it will become a part of Microsoft’s productivity and business processes segment. LinkedIn’s CEO Jeff Weiner will report to Satya Nadella.

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