While many LinkedIn users posted a typical Monday status update, LinkedIn had one that was a lot more exciting.
The company announced on Monday that it has been acquired by Microsoft for $26.2 billion in a cash deal announced this morning.
According to terms of the deal announced by both companies, Microsoft will pay $196 a share to purchase for the business social network.
“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Microsoft CEO Satya Nadella said in a statement.
“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 transaction is expected to be complete by the end of the year and Microsoft plans to retain Jeff Weiner as CEO of LinkedIn as well as have the social network continue to operate as an independent brand.
“Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business,”said Reid Hoffman, chairman, co-founder of LinkedIn. “I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”
LinkedIn shares gained 48 percent during pre-market trading after the announcement.
Disclaimer: We have no position in LinkedIn (NYSE: LNKD) or Microsoft (NASDAQ: MSFT) and have not been compensated for this article.