LinkedIn Chairman Reid Hoffman called the transaction a “re-founding moment” for the company, which went public in May 2011 at $45 per share. Total membership soared 19% year-over-year to more than 433 million, while job listings increased 101% to 7 million active jobs. In LinkedIn’s latest quarter, the company reported stronger revenue in its talent solutions business, which helps recruiters connect with potential job seekers. “Imagine a world where we’re no longer looking up at tech titans such as AppleĪnd Facebook, and wondering what it would be like to operate at their extraordinary scale - because we’re one of them,” Weiner said in a statement. Linkedn sought to create a stable position for itself while retaining some independence, according to Weiner. Some analysts had described LinkedIn as a potential takeover target earlier this year. Microsoft continues to expect to complete a $40 billion buyback plan in 2016. Microsoft said it would finance the transaction by issuing new debt. Its shares are down 3% over the last three months and up 12% over the last year. Microsoft’s shares fell 4.7% early Monday. I can envision a service where businesses more freely collaborate, leveraging online versions of Office 365, Skype for business and OneDrive.” “I see the potential for a beefed up business social media service which is more than a resume posting service as it is today. “Based on the income statement and balance sheet, the numbers look high for an acquisition,” Moorhead said. Moorhead said the deal could bolster Microsoft’s enterprise cloud offerings, which grew more slowly than expected last quarter. Microsoft might have overpaid for LinkedIn, but it’s too soon to tell, according to Patrick Moorhead, founder and principal analyst at Moor Insight & Strategy. The deal is expected to boost non-GAAP earnings Starting in fiscal 2019, Microsoft said. In a statement, Microsoft said it expects the acquisition to have “minimal dilution” or roughly 1% to non-GAAP earnings per share for the remainder of fiscal-year 2017 and for all of fiscal 2018. Last quarter, LinkedIn reported revenue of $861 million, a year-over-year increase of 35%. “In essence, we can reinvent ways to make professionals more productive while at the same time reinventing selling, marketing and talent management business processes,” said Nadella in a public message to Microsoft employees. Microsoft said it expects to keep LinkedIn’s brand and independence, but will work to integrate the professional social network with Microsoft Office 365 and Dynamics, its customer relationship management offering. The acquisition is Microsoft’s largest under Nadella, who became CEO in 2014. Both company’s boards have unanimously approved the acquisition. The deal is expected to close later this year, pending regulatory approvals. Jeff Weiner will remain CEO of LinkedIn, reporting directly to Microsoft CEO Satya Nadella. Were down 2.5% early Monday afternoon, while the S&P 500 Shares of some other social media companies were active Monday. More on the Microsoft/LinkedIn merger LinkedIn’s buyout could cost one of its largest shareholders over $300 million 10 things LinkedIn won’t tell you LinkedIn CEO on why the company chose to sell to Microsoft Were off about 2.6% through early Monday afternoon. Shares had been up 14% over the last three months but down nearly 40% over the last year, underperforming the S&P 500. LinkedIn shares were up some 47% as of Monday afternoon.
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