Microsoft to acquire LinkedIn for $26.2 bn

Microsoft Corp. said Monday it was acquiring professional networking giant LinkedIn Corporation for $26.2 billion in the biggest tech deal in the United States so far this year.

“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Microsoft CEO Satya 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 organization on the planet.”

Under the terms of the agreement, Microsoft will pay $196 in cash for each outstanding share of LinkedIn, representing a 50 percent premium over last Friday’s closing price.

The acquisition is the biggest tech deal so far in 2016 and the largest ever by the software giant founded by Bill Gates and Paul Allen in the 1970s.

Microsoft has been trying to diversify its product portfolio for years, with some deals working out well and others not panning out.

The tech giant paid $7.5 billion for Nokia’s phone unit in 2014, a deal that did not live up to expectations.

Redmond, Washingtonbased Microsoft bought Skype in 2011 for $8.5 billion and more recently paid $2.5 billion for gaming company Mojang, the maker of the popular Minecraft series.

LinkedIn chairman and cofounder Reid Hoffman, for his part, praised the deal, citing the opportunities it would open up for the professional networking company.

“Today is a refounding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business,” Hoffman said. “I fully support this transaction and the board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”

Hoffman is the controlling shareholder of LinkedIn, which has more than 430 million members and offices in 200 countries.

The professional networking company posted a loss of $166 million on revenues of $2.9 billion in 2015.

Shares of LinkedIn were up $61.22, or 46.70 percent, to $192.30, while Microsoft shares were down $1.36, or 2.65 percent, at $50.12 in late afternoon trading on the Nasdaq market.