LinkedIn purchase triggers a 48% rise before the opening of Wall Street
Microsoft has announced an agreement to buy the social network for $26.2 billion
- The acquisition causes the social network to rise rapidly in stock exchange premarket
- Microsoft companies experience falls in the market after Monday's news
Huge news on Wall Street before the opening of the market as Microsoft has announced an agreement for the purchase of LinkedIn for $26.2 billion, which involves a payment of $196 per share. Microsoft companies fall more than 3% in the premarket, before the opening of the the New York Stock Exchange, while those of LinkedIn soar 48%.
It must be noted, though, that throughout the year LinkedIn has actually lost over 41%. A strong movement downwards is due to the decline of 44% on the day results were released for the last quarter of 2015. There was a disappointing forecast of income to the value of $820 million between January and March, and an earnings per share (EPS) of 55 cents.
In a meeting, they cleared 10,000 million of their stock market value, which until then had been 17,500 million. On the other hand, Microsoft has dropped 7% in 2016, with a market capitalisation in excess of 400 billion..
"Today we are excited to share that LinkedIn has entered into an agreement to be acquired by Microsoft. We are joining forces with Microsoft to realize a common mission to empower people and organizations. LinkedIn’s vision – to create economic opportunity for every member of the global workforce – is not changing and our members still come first," wrote LinkedIn CEO Jeff Weiner.
The technology giant indicated that the social network would maintain its "distinct brand, culture and independence". CEO Weiner will continue in his role in the business, under Microsoft boss Satya Nadella.
The technology giant indicated that the social network would maintain its "distinct brand, culture and independence".
“The LinkedIn team has grown a fantastic business centred on connecting the world’s professionals,” Nadella said in a statement.
“Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”
