Where large companies are concerned, there are few other technology businesses that can compete with Microsoft. A rich history combined with software, and more recently hardware solutions, for practically everything and everyone, Microsoft has ended up with a lot of money in the bank. They might not be as cash rich as Apple, but they've got more in the bank than Google, and now they're putting a large portion of it where their mouth is. That's because today, Microsoft and LinkedIn have entered an agreement for the former to acquire the latter in an all-cash deal. This all-cash deal is worth no less than $26.2 Billion.
This deal sees LinkedIn stock valued at $196 a share and has been fully-approved by both parties and their shareholders. This seems to be a deal that must have been in the works for a long time now, as there's a short interview between Microsoft's CEO, Satya Nadella, as well LinkedIn's CEO, Jeff Weiner, enthusing over the new deal. While this is an all-cash deal, Microsoft will be financing the deal "primarily through the issuance of new indebtedness" and by the close of the deal – which Microsoft seems to think will happen quite quickly – LinkedIn's financials will become part of Microsoft's. The professional social network will become part of Microsoft's Productivity and Business Processes segment, with the network staying an independent company under Microsoft's umbrella. Nadella said of the deal that "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".
Weiner will retain his position as CEO of LinkedIn, and rather than be rebranded a Microsoft entity, LinkedIn will remain its own entity. The timing of this new deal is interesting, as Apple takes to the stage today for their WWDC event. For Microsoft, this will be a way of creating even more connected products to take on the collaboration that Google has been offering users for free with Drive and Google Docs products. For LinkedIn meanwhile, it will mostly be business as usual, save for some new products integrating with Microsoft's offerings. This will also give LinkedIn a parent company with the sort of cash and cloud platform to ensure their longevity without relying on their own steam.