Why Microsoft is acquiring LinkedIn for $26 Billion

Microsoft today announced they are going to acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash.  Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. The deal  is expected to close this calendar year. You can read Satya Nadella’s email to Microsoft employees regarding this acquisition here.

$26 billion for LinkedIn is too much in my opinion. But, Microsoft’s leadership thinks otherwise. Check out the presentation below from Microsoft regarding LinkedIn acquisition and how it makes sense.