microsoft to buy linkedln, the professional social network for $26.2 billion

microsft to buy lind

Microsoft has confirmed it is ready to  buy the professional social network LinkedIn for $26.2 billion in cash, a move that helps 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 takes a big step into the world of social networking and adds 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.” 

According to a statement from the two firms, LinkedIn “will retain its distinct brand, culture and independence,” with Jeff Weiner remaining at CEO of LinkedIn. 

“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 with Microsoft moving away from being a pure software firm, and LinkedIn seeking 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 LinkedIn in the past quarter reported a loss of $46 million and a $166 million loss for 2015, which let its shares at multiyear lows early this year. Nadella, in an email to staff, said the deal reflects Microsoft’s new focus on the enterprise and cloud.