In a surprise announcement Microsoft said Monday that it’s buying LinkedIn in the tech giant’s biggest acquisition ever.
The all cash deal is valued at $26.2 billion. This is set to be the 5th largest tech deal ever. It’s also very expensive, with microsoft paying 196 dollars a share.
The deal gives Microsoft a database of professional information and a distribution channel for software systems. LinkedIn gets to keep its branding while gaining access to millions of potential users and much-needed financing.
The professional networking company saw it’s shares start to sink over the past six months as Facebook has soared.
One analyst expressed skepticism about the merger because of its size, cost, and the amount of work involved.