Microsoft drops $26.2 billion on LinkedIn
Facebook bought Instagram for $1 billion and WhatsApp for $19 billion, while Google "only" spent $1.65 billion on YouTube, and Yahoo dropped $1.1 billion on Tumblr. Microsoft just put all those social media acquisitions to shame, announcing it will acquire business social network LinkedIn for $26.2 billion to take definitive control of how we all curate our online professional lives.
Microsoft will acquire LinkedIn for $196 per share, with LinkedIn retaining its brand and CEO Jeff Weiner, who will now report to Microsoft CEO Satya Nadella. This isn't Microsoft's first acquisition in the enterprise social networking space; the company spent $1.2 billion on enterprise collaboration software Yammer Free at Yammer in 2012.
The tech giant buys LinkedIn at one of the company's weakest moments since LinkedIn's initial public offering (IPO) in 2011; a few months back the company's stock price plunged more 50 percent, but as this acquisition shows, it wasn't time to write off LinkedIn just yet.
"The LinkedIn team has grown a fantastic business centered on connecting the world's professionals," said Nadella in a news release. "Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365$89.99 at Amazon and Dynamics as we seek to empower every person and organization on the planet."