LinkedIn is having an incredible day in the market today, and for good reason. The company announced early this morning that it has come to an agreement to be acquired by Microsoft. Today, we’ll talk about the details of the acquisition, how the market reacted to the news, and what we can expect to see from LNKD moving forward. So, let’s get right to it…
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MSFT To Acquire LNKD
As mentioned above, LinkedIn is having an incredible day in the market today after announcing that they have entered into a definitive agreement with Microsoft. Under the terms of the agreement, Microsoft will pay $196 per share to acquire the company in an all-cash deal. This brings the total value of the acquisition to $26.2 billion.
It was also stated that LNKD will retain its brand, culture, and independence from Microsoft. This is a great thing because the company is considered to be the most valuable professional social network and continues to build its audience. In a statement, Satya Nadella, CEO at Microsoft, had the following to offer:
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals… 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.”
The above statement was followed up by Jeff Weiner, CEO at LNKD. Here’s what he had to say:
“Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works… For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”
How The Market Reacted To The News
As investors, we know that the news moves the market, and nothing seems to get investors quite as excited as acquisitions. With the announcement that LNKD will be acquired by MSFT, investors are excited. As a result, we’re seeing incredibly positive movement in the value of the stock today. Currently (11:31), the stock is trading at $193.00 per share after a gain of $61.92 per share, or 47.24%, thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from LinkedIn. The reality is that the acquisition announced today is a match made in heaven. LNKD has done an incredibly job capturing the professional audience, as has Microsoft. While LinkedIn will retain its identity and remain somewhat separate, we have to imagine that the incredible business tools offered by MSFT will propel LNKD to the next level. All in all, I’m excited about what the future holds for the social network!
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What Do You Think?
[Image Courtesy of Flickr]