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Microsoft to buy LinkedIn for $26bn | Microsoft to buy LinkedIn for $26bn |
(35 minutes later) | |
Microsoft is buying the professional networking website LinkedIn for just over $26bn (£18bn) in cash. | |
The software giant will pay $196 a share - a premium of almost 50%. | |
Shares in LinkedIn, which floated in May 2011, have fallen by more than 40% this year. | |
The stock plunged by a quarter in February after the company issued a profit warning for the first quarter and reported an annual loss of $8m. | |
LinkedIn shares soared to $194.25 in pre-market trading in New York after the deal was announced. | |
Microsoft said that LinkedIn would retain its "distinct brand, culture and independence", with Jeff Weiner remaining as chief executive, reporting to Microsoft boss Satya Nadella. | |
Mr Weiner and Reid Hoffman - the chairman, co-founder and controlling shareholder of LinkedIn - both backed the deal. | |
"Today is a re-founding moment for LinkedIn," said Mr Hoffman. | |
Mr Nadella said: "The LinkedIn team has grown 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." | |
It is by far the biggest acquisition made by Microsoft, which has completed eight takeovers worth more than $1bn. | |
It paid $8.5bn for Skype in 2011 and bought Nokia's mobile phone business for $7.2bn in 2013. | |
The LinkedIn acquisition also eclipses the $19bn that Facebook paid for WhatsApp in 2014. |