Microsoft has agreed to fully acquire LinkedIn for USD 196 per share in an all-cash transaction valued at USD 26.2 billion. Under the deal, which includes LinkedIn´s net cash, the company will retain its brand, culture and independence, and Jeff Weiner will remain CEO, reporting to Microsoft chief Satya Nadella.
Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner said they both fully support this transaction, which is expected to close this calendar year. The acquisition is still subject to approval by LinkedIn's shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.
Microsoft will finance the transaction mainly through the issue of new shares. Upon closing, Microsoft will report LinkedIn's financials under its Productivity and Business Processes segment. Microsoft expects the acquisition to have minimal dilution of around 1 percent to adjusted earnings per share for the remainder of fiscal year 2017 post-closing and for fiscal year 2018 based on the expected close date, and become accretive to Microsoft's adjusted earnings per share in fiscal year 2019 or less than two years post-closing. Microsoft also reiterated its intention to complete its existing USD 40 billion share buyback by end December.
