Microsoft buying LinkedIn

[SID_NY]

With the news broke today, the shares of LinkedIn have skyrocketed.

LinkedIn Corp Skyrockets On Microsoft Corporation Buyout Deal - ValueWalk

LinkedIn Corp Skyrockets On Microsoft Corporation Buyout Deal

LinkedIn shares exploded while Microsoft shares slipped after the two companies announced that they will be combining. Microsoft will pay $26.2 billion to acquire LinkedIn in an all-cash deal which slaps a value of $196 per share on the social network. Shares of LinkedIn initially surged by more than 60% before pulling back. As of this writing, the stock is up 48.23% at $194.30, while Microsoft shares are down 3.28% at $51.48.
Microsoft to buy LinkedIn
The purchase price represents a 50% premium to LinkedIn’s closing price on Friday.
Microsoft said LinkedIn Chief Executive Jeff Weiner will continue to head up the social network, which will keep its separate identity, independence and brand, after the acquisition. Weiner will report to Microsoft CEO Satya Nadella. According to CNBC, Weiner said in a memo to employees that not much will change after the acquisition, with the only exception being the positions of employees whose positions are related to maintaining the company’s, although they plan to help the employees find their “next play.”
The transaction is expected to close sometime before the end of this year. Both companies’ boards unanimously approved it, and Microsoft will issue new debt to pay for most of it. Microsoft said it expects the acquisition to trim approximately 1% off its adjusted earnings per share for the rest of fiscal 2017.
The company will combine LinkedIn with its enterprise cloud services business, especially with Microsoft Office 365 and Dynamics, which is its customer relationship management service. LinkedIn’s earnings results will come under the results for Microsoft’s productivity and business processes segment.

[Doppleganger]

Re: Microsoft buying LinkedIn

Micro is paying 49.5% premium for the $196 per share price of LinkedIn. It might be good for the shareholders and big boys up at top, but I don't think that it is a good deal for Satya especially considering the fact that aside from Skype, they have had to write off purchases like nokia or another social platform that I can't remember (maybe for a reason?).

[Chicken_Biryani]

Re: Microsoft buying LinkedIn

hmmm, Dont think it will change anything for the users , would it?