Microsoft to Buy LinkedIn for $26.2 Billion

By Anne Steele

Microsoft Corp. on Monday said it has reached a deal to buy LinkedIn Corp., the professional social-networking company, for $26.2 billion in cash

Microsoft will pay $196 per LinkedIn share, a 50% premium to LinkedIn's closing price on Friday.

In a blog post, Microsoft said LinkedIn will "retain its distinct brand, culture and independence," with Chief Executive Jeff Weiner remaining at the helm, reporting to Microsoft CEO Satya Nadella.

The deal is expected to close within the year.

Shares of LinkedIn jumped 48% to $194.40 in premarket trading, while Microsoft shares edged 0.4% lower.

LinkedIn has had a choppy year with an optimistic April quarterly report partially offsetting a downbeat February forecast. The February forecast triggered a selloff that cut its value nearly in half. About two-thirds of LinkedIn's revenue comes from its talent-solutions division, which helps corporate recruiters identify job candidates, in contrast to other social networks that primarily rely on advertising revenue. The unit generated $558 million in revenue in the first quarter, up 41% from a year ago.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

June 13, 2016 09:04 ET (13:04 GMT)

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