During the hustle and bustle of E3, Microsoft announced that it was to acquire professional social network, LinkedIn for $26.2 billion, in an all-cash transaction, valuing the networks shares at $196 each.
LinkedIn, the work-focused, professional social network is to be acquired by Microsoft, but will retain its own brand and independence, with existing CEO Jeff Weiner remaining, but reporting to Microsoft CEO Satya Nadella.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “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 acquisition is set to close later this year, and has been approved unanimously by the boards of directors of both companies.
Why has Microsoft acquired the network however? Well it looks as if the company is keen to bolster its professional services and products, as well as having more of a foothold in the professional work space. LinkedIn currently has 433 million members and more than 2 million paid subscribers. Adding that to the 1.2 billion Office users, then you’re looking at a lot of professionals for Microsoft to reach.
LinkedIn is quickly becoming the go-to place for looking for work as it offers users the chance to add all of the same details they’d supply on a resume, but have the ability to share this information more widely.