Microsoft announced early today that it will acquire enterprise social network LinkedIn for approximately $26.2 billion in cash. In a press release announcing the news, Microsoft said LinkedIn will retain its brand, culture and independence as part of the deal. CEO Jeff Weiner will remain in place, and will report directly to Microsoft CEO Satya Nadella as a member of his senior staff.
LinkedIn may be regarded as less dynamic than likes of Facebook and especially Twitter but where most networks have struggled to attract new members, it has managed both consistent growth in membership and revenue.
Over the past year, LinkedIn reported 19% increase in membership to more than 433 million users worldwide and 9% growth to more than 105 million unique visiting members per month. It also reported 34% growth in member page views to 45 billion per quarter.
Founded in 2002, LinkedIn employs 9,200 staff worldwide. It’s international base is in Dublin, where it employs 1,000. In 2011 LinkedIn floated on the New York Stock Exchange with shares debuting at $45. At time of writing the value of shares had soared in value by 47% to $193.
In 2015 LinkedIn acquired online course provider Lynda.com for $1.5 billion, at the time being the fourth largest deal in social media history behind Facebook’s purchases of WhatsApp ($19 billion), Oculus ($2 billion) and Google’s acquitision of YouTube ($1.65 billion).
This is by far the largest acquisition in Microsoft’s history, worth more than its acquisitions of Nokia’s devices division and Skype combined, for which is paid $7.2 billion and $8.5 billion respectively.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “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.”
Jeff Weiner added: “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.”
The deal is supported by LinkedIn chairman of the board, co-founder and controlling shareholder Reid Hoffman and is expected to close by the end of 2016.
IDG News Service and TechCentral Reporters
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