Microsoft on Monday announced a $26.2 billion deal to acquire professional networking platform LinkedIn for $196 per share. The market gave a mixed reaction to the announcement. While shares of LinkedIn surged 47 percent to near $193, Microsoft’s stock was down 3.2 percent.
Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research, says, “The deal will help Microsoft compete in the enterprise space and go beyond attracting just CIOs. Majority of LinkedIn buyers are chief human resource, chief marketing officers, and the new IT spend is coming from them. So it makes complete sense.” Additionally, there is no overlap in terms of product portfolio.
Source: International Finance Magazine