According to a recent article by Microsoft, “Microsoft Corp. (Nasdaq: MSFT) and LinkedIn Corporation (NYSE: LNKD) on Monday announced they have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn????????s net cash. LinkedIn will retain its distinct brand, culture and independence. 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 both fully support this transaction. The transaction is expected to close this calendar year.”
The purpose of this transation, according to an email released by Nadella to his staff, is to, “Bring together the worlds leading professional cloud with the worlds leading professional network”. No doubt Microsoft has plans to tightly integrate LinkedIn services with their popular Office 365 cloud services. Only time will tell but any changes will likely be done gradually to prevent alienation of the LinkedIn user base.