Home Tech News Microsoft CEO: LinkedIn’s $26.2 billion acquisition ‘will empower everyone on this planet’

Microsoft CEO: LinkedIn’s $26.2 billion acquisition ‘will empower everyone on this planet’

Microsoft CEO: LinkedIn’s $26.2 billion acquisition ‘will empower everyone on this planet’
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Satya Nadella, CEO of Microsoft has said that the tech company’s to buy LinkedIn Corp, the professional social-networking company for $26. billion is part of plans by the two companies to empower everyone on the planet. 

Commenting on the deal, Microsoft’s Nadella says “the LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”

Microsoft said Monday that it has reached a deal to buy LinkedIn Corp., the professional social-networking company, for $26.2 billion in cash as it pushes to make its products more connected.

Under the deal Microsoft will pay $196 per LinkedIn share, a 50% premium to LinkedIn’s closing price on Friday.

According to the statement by both companies, LinkedIn will retain its distinct brand, culture and independence and Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.

Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner say they fully support this transaction which is expected to close this calendar year.

Microsoft will finance the transaction primarily through the issuance of new indebtedness. Upon closing, Microsoft expects LinkedIn’s financials to be reported as part of Microsoft’s Productivity and Business Processes segment.

Microsoft also expects the acquisition to have minimal dilution of 1 percent to non-GAAP earnings per share for the remainder of fiscal year 2017 post-closing and for fiscal year 2018 based on the expected close date, and become accretive to Microsoft’s non-GAAP earnings per share in Microsoft’s fiscal year 2019 or less than two years post-closing.

Non-GAAP includes stock-based compensation expense consistent with Microsoft’s reporting practice, and excludes expected impact of purchase accounting adjustments as well as integration and transaction-related expenses.

In addition, Microsoft also reiterated its intention to complete its existing $40 billion share repurchase authorization by December 31, 2016.

Commenting on the deal, Microsoft’s Nadella says: “The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”

In his own reaction, LinkedIn’s Weiner says: “Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works,”

“For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story,” he adds.

Also commenting, LinkedIn’s co-founder, Hoffman says: “Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business. I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”

The transaction has been unanimously approved by the Boards of Directors of both LinkedIn and Microsoft. The deal is expected to close this calendar year and is subject to approval by LinkedIn’s shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.

 

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Donatus Anichukwueze Technology Journalist at Technology Times Media Phone No: 08074016066 e-mail: donatus.anichukwueze@technologytimes.ng

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