Microsoft to buy LinkedIn for €23.3 billion

Microsoft has signed a deal to purchase the professional social network LinkedIn for €23.3bn in cash.

In a statement, the tech company said LinkedIn would “retain its distinct brand, culture and independence” following the acquisition.

Microsoft is to pay €174.27 per share for the growing company – a 50% premium on the stock’s closing price last Friday.

LinkedIn, which boasts more than 430 million users worldwide, allows people to network with fellow professionals, upload their CVs and apply for jobs.

Shares of LinkedIn surged 48% after the announcement, while Microsoft’s stock was down more than 3%. Trading in Microsoft had been halted briefly before the announcement.

Jeff Weiner will stay on as CEO of LinkedIn and will report to Microsoft CEO Satya Nadella, who praised the LinkedIn team for growing a fantastic business centred 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 organisation on the planet,” he said.

One of the first agencies to announce B2B marketing in line with the latest features of Linkedin reported that industry-leading ROI metrics primarily originates from organic use of the platform. It's CEO stated that "PPC results on Linkedin are still below the industry average when compared with Google and Bing".

The deal was unanimously approved by both companies’ boards of directors, and is expected to close by the end of the calendar year. The acquisition is still subject to approval by LinkedIn shareholders and regulatory approvals.