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Microsoft’s Acquisition of LinkedIn

In: Wealth Creation in the World’s Largest Mergers and Acquisitions

Author

Listed:
  • B. Rajesh Kumar

    (Institute of Management Technology)

Abstract

On June 13, 2016, Microsoft Corp and LinkedIn entered into a definitive agreement under which Microsoft acquired LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion. Microsoft paid $196 per share in cash which represented a 50% premium over LinkedIn’s closing price before announcement. This amounted to $9 billion premium which was paid to LinkedIn’s market value. Microsoft paid $196 per share in cash which represented a 50% premium over LinkedIn’s closing price before announcement. This amounted to $9 billion premium which was paid to LinkedIn’s market value. The new deal meant that Microsoft could embed LinkedIn with Skype, its email system and other enterprise products. Microsoft acquired one of the world’s most influential, specialized, highly read and constantly updated digital media company. LinkedIn had 433 million users with more than a quarter of them in the United States alone. Microsoft’s largest ever acquisition was aimed to fit into a strategy of building up the Microsoft Office suite of workplace productivity products and its cloud computing business. Synergy from the deal was expected through the integration of LinkedIn Sales Navigator tool for sales representatives into Microsoft’s customer relationship management tool, Dynamics.

Suggested Citation

  • B. Rajesh Kumar, 2019. "Microsoft’s Acquisition of LinkedIn," Management for Professionals, in: Wealth Creation in the World’s Largest Mergers and Acquisitions, chapter 27, pages 235-241, Springer.
    • Handle: RePEc:spr:mgmchp:978-3-030-02363-8_27
    DOI: 10.1007/978-3-030-02363-8_27
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