In what is said to be the 5th largest tech deal ever, Microsoft announced on Monday that they will be buying over the “professional social media” LinkedIn. Microsoft (MSFT, Tech30) is paying $196 per share in an all-cash deal. That’s 50% more than LinkedIn stock’s closing price at the end of the day on Friday.
Presently Microsoft dominates the global market for computer systems in the world but Microsoft wants to use LinkedIn as a database of professional information and distribution channel for its software systems. LinkedIn gains additional financing and access to millions of people who could potentially join its network. LinkedIn which was reportedly hacked sometimes last week and members of LinkedIn were advised to change their passwords with immediate effect.
This deal doesn’t change too much as LinkedIn brand will continue after the deal is closed later this year, the companies said. Jeff Weiner will remain CEO of LinkedIn, reporting to Microsoft CEO Satya Nadella which seems to benefit both companies respectively.
Together, the two companies could build new types of services that would be particularly useful for workers in sales and HR roles, according to Rodney Nelson, lead Microsoft analyst at Morningstar.
Following the announcement that LinkedIn would be bought, it is rumoured that Twitter might just be next to be bought especially due to the fact that they have been struggling recently.