Microsoft buys social-networking site LinkedIn for $26.2 billion
Microsoft said Monday it was buying the professional social network LinkedIn for $26.2 billion in cash, a move that would help refocus the US tech giant around cloud computing and services.
With its biggest-ever acquisition and one of the largest in the tech sector, Microsoft is taking a big step into the world of social networking, adding a new tool for its efforts to boost services for business.
"This deal brings together the world's leading professional cloud with the world's leading professional network," Microsoft chief executive Satya Nadella said in a statement.
"It's clear to me that the LinkedIn team has grown a fantastic business and an impressive network of more than 433 million professionals."
LinkedIn "will retain its distinct brand, culture and independence," with Jeff Weiner remaining as LinkedIn CEO, a statement from the two firms said.
"Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn's network, now gives us a chance to also change the way the world works," Weiner said.
The two firms said they had reached a "definitive" agreement that would close later this year, with the support of LinkedIn chairman and controlling shareholder Reid Hoffman.
The move comes as Microsoft is moving away from its role as a pure software firm, and LinkedIn seeks ways to boost growth.
LinkedIn, which enables members to connect with similar-minded professionals and facilitates recruiting and job hunting, has carved out a social network with a distinct identity.
But the company reported a loss of $46 million in the past quarter and a $166 million loss for 2015, which put its shares at multiyear lows early this year.
Nadella said in an email to staff that the deal reflects Microsoft's new focus on business services and cloud computing.
"We are in pursuit of a common mission centered on empowering people and organizations," he said.
The deal "is key to our bold ambition to reinvent productivity and business processes," he added. "Think about it: How people find jobs, build skills, sell, market and get work done and ultimately find success requires a connected professional world."
LinkedIn, which calls itself "the world's largest and most valuable professional network," has been seeking to expand its offerings with more messaging and mobile applications, and revamped its "newsfeed" to help boost engagement.
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