Microsoft has said it is buying LinkedIn for $26.2 billion in cash.
In a post on the Microsoft website, Microsoft said that that the deal values LinkedIn at $196 per share.
Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.
Satya said that as a user of LinkedIn and a publisher on LinkedIn, he was excited to work with the site because of the way it empowers people to take the next step in their careers.
“Satya said we have to make sure that there is alignment in two areas: purpose and structure.
“It was after the purpose discussion where there was a lot of excitement.
“Satya said you guys have to help write the rules, you have your independence, we have this shared sense of alignment,” Jeff Weiner, LinkedIn CEO, said.
According to the tag lines on the promotion video in which the two men were speaking, LinkedIn’s mission is to connect the world’s professionals to make them more productive and successful, while Microsoft wants to empower every person and organisation on the planet to achieve more.
LinkedIn shares surged 49 per cent in premarket trading in New York to $194.63, while Microsoft shares fell 3.7 per cent to $49.60.