zerohedge.com / by Tyler Durden / Jun 13, 2016 8:39 AM
Merger monday is back with a bang, when moments ago Microsoft announced that it would buy LinkedIn for $196/share, a massive 50% premium to the Friday closing price of $131. The total deal size is $26.2 billion and according to the press release, MSFT will finance the transaction primarily through the issuance of new debt. Indicatively, almost exactly one year ago, LNKD was trading at $300.
Microsoft, which will pay a $725 million termination fee if the deal does not go through, warns that the deal will only become accretive in 2019. This means many synergies are coming for the tech company.
Microsoft also reiterated its intention to complete its existing $40 billion share repurchase authorization by Dec. 31, 2016.
From the MSFT blog:
Microsoft and LinkedIn Corporation on Monday announced they have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash. LinkedIn will retain its distinct brand, culture and independence. 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.
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Thanks to BrotherJohnF