Microsoft To Buy LinkedIn In $26.2 Bln Deal

(RTTNews) - Microsoft Corp. (MSFT) said Monday that it agreed to buy LinkedIn Corp. (LNKD) for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn's net cash.

LNKD is currently trading at $194.50 in the pre-market activity, up 63.42 or 48.38%.

Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction. The transaction is expected to close this calendar year.

The transaction has been unanimously approved by the Boards of Directors of both LinkedIn and Microsoft. The deal is expected to close this calendar year and is subject to approval by LinkedIn's shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.

Microsoft said it will finance the transaction primarily through the issuance of new indebtedness.

Upon closing, Microsoft expects LinkedIn's financials to be reported as part of Microsoft's Productivity and Business Processes segment.

Microsoft noted that it expects the acquisition to have minimal dilution of about 1 percent to non-GAAP 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 non-GAAP earnings per share in Microsoft's fiscal year 2019 or less than two years post-closing.

In addition, Microsoft also reiterated its intention to complete its existing $40 billion share repurchase authorization by December 31, 2016, the same timeframe as previously committed.