Microsoft Is Buying Professional Network LinkedIn For $26 Billion

And they're paying in cash.
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Microsoft has announced today that it is in the process of buying professional networking site LinkedIn.

The technology giant will be paying $26 billion ($196 per share) for the acquisition of the social platform, which currently has 433 million users.

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Both Microsoft and LinkedIn boards have unanimously given the go ahead for the transaction to take place.

It will be paid an all-cash transaction by Bill Gate’s computer company, which is headquartered in Seattle, USA.

In a blog post on the Microsoft news site, Reid Hoffman, Chairman of the LinkedIn board said: “Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business.”

Hoffman added: “I fully support this transaction and the board’s decision to pursue it and will vote my shares in accordance with their recommendation on it.”

The last year has been positive for growth at LinkedIn, with figures on the Microsoft blogging site pointing to a 19% growth year on year to its current 433 million members.

 

Not to mention a growth of 9% in unique visitors on the site each month between 2015-2016.

CEO of LinkedIn, Jeff Weiner will now report to the CEO of Microsoft Satya Nadella and despite the merger LinkedIn will retain its current branding and product.

Microsoft has also been transparent about how it means to fund the purchase, primarily through "issuance of new indebtedness".

A publicly available joint conference call will be available between the two boards will be streamed at 4.45pm (GMT) on the 13 June to discuss the final transaction.

8 Facebook Privacy Flaps
(01 of09)
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From CBC: '8 Facebook Privacy Flaps'An Indian man opens a Facebook page on his mobile phone in Hyderabad, India, Thursday, May 17, 2012. The company's shares are expected to begin trading on the Nasdaq Stock Market on Friday under the ticker symbol "FB". Facebook is likely to have an estimated market valuation of some $100 billion, making it worth more than Kraft Foods, Ford or Disney. (AP Photo/Mahesh Kumar A.) (credit:AP)
2006: News feed(02 of09)
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When Facebook launched "news feed" in 2006, it angered many users by not giving them control of who could see their updates, or the ability to opt out.A "Students Against Facebook New Feed" group was set up by university student Ben Parr, now a well-known writer and expert on social media and internet technology. After it had garnered nearly 300,000 members in two days, Zuckerberg apologized on the Facebook blog."We really messed this one up," he said. Conceding that "we didn't build in the proper privacy controls," Zuckerberg described the move as "a big mistake on our part."An unidentified 11-year-old girl looks at Facebook on her computer at her home in Palo Alto, Calif., on Monday, June 4, 2012. Though Facebook bans children under 13, millions of them have profiles on the site by lying about their age. The company is now testing ways to allow those kids to participate without needing to lie. This would likely be under parental supervision, such as by connecting children's accounts to their parents' accounts. (AP Photo/Paul Sakuma) (credit:AP)
2007: Beacon(03 of09)
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Beacon was a Facebook ad system that tracked what users did and what they purchased on partner websites, even for users who were not Facebook members. Adding to the privacy concerns, information about Facebook users' purchases were published without their explicit consent on their friends' news feeds.The Facebook community mobilized as confusion reigned over whether Beacon was an opt-in or opt-out system and within a month Zuckerberg apologized."We've made a lot of mistakes building this feature, but we've made even more with how we've handled them," he wrote.Facebook shut down Beacon in 2009.A Facebook logo is displayed on the screen of an iPad, Wednesday, May 16, 2012 in New York. Facebook's initial public offering is one of the most hotly anticipated in years. The company is likely to have an estimated market valuation of $100 billion when its shares begin trading on the Nasdaq stock market on Friday. (AP Photo/James H. Collins) (credit:AP)
2009: Privacy settings(04 of09)
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Facebook changed their privacy settings so that sharing information with everyone became the default setting and removed the news feed privacy controls put in place after their "big mistake" in 2006. They implemented a new process for choosing privacy settings but groups like the American Civil Liberties Union launched petitions and campaigns. Facebook quickly created a guide to privacy settings for their users.Unsatisfied, the Electronic Privacy Information Center (EPIC) filed a formal complaint with the U.S. Federal Trade Commission over Facebook's "unfair and deceptive business practices." Canada's privacy commissioner also launched an investigation.The FTC complaint was settled in 2012, with Facebook agreeing to give users "clear and prominent notice" when their information is shared; obtain their express consent before doing so, when it isn't covered by the privacy settings; maintain a privacy program; and have privacy audits every two years.FILE - In this Oct. 10, 2011 file photo, a magnifying glass is posed over a monitor displaying a Facebook page in Munich. Facebook is letting its nearly 1 billion users vote on changes to its privacy policy beginning on Friday, June 1, 2012. This is the second time Facebook let users vote on policy changes. The first time was in 2009 when Facebook was a much smaller, privately held company with about 200 million users (AP Photo/dapd, Joerg Koch) (credit:AP)
2010: More privacy problems(05 of09)
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A glitch in February 2010 caused some private messages on Facebook to be sent to unintended recipients and that May a coding error opened Facebook chats, which are supposed to be private, to others.Also in May, the European Union criticized Facebook's privacy policy, saying that "opt out" was insufficient consent for advertising and "opt in" should be the standard.That month, EPIC, along with other groups, filed another complaint with the FTC, while two Canadians scheduled a global "Quit Facebook" day.A few weeks later, the Wall Street Journal revealed that Facebook and other social networking websites "have been sending data to advertising companies that could be used to find consumers' names and other personal details, despite promises they don't share such information without consent."Zuckerberg soon responded on the Facebook blog, announcing that they would make it easier to control privacy settings and give users more say over what information is made public.An unidentified 11-year-old girl logs into Facebook on her iPhone at her home in Palo Alto, Calif., Monday, June 4, 2012. Though Facebook bans children under 13, millions of them have profiles on the site by lying about their age. The company is now testing ways to allow those kids to participate without needing to lie. This would likely be under parental supervision, such as by connecting children's accounts to their parents' accounts. (AP Photo/Paul Sakuma) (credit:AP)
2011: The anti-Google campaign(06 of09)
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Facebook hired Burson-Marsteller, a public relations firm, to contact journalists and bloggers with accusations that Google was engaged in a "sweeping violation of user privacy."The problem, however, was that Facebook wanted it kept private that they were behind the anti-Google campaign. Once exposed, Facebook admitted that they should have behaved "in a serious and transparent way."FILE - In this May, 26, 2010 file photo, Facebook CEO Mark Zuckerberg talks about the social network site's new privacy settings in Palo Alto, Calif. Facebook has raised $500 million from Goldman Sachs and a Russian investment firm in a deal that values the company at $50 billion, The New York Times reported. Goldman invested $450 million and Digital Sky Technologies invested $50 million, the newspaper reported Sunday in its online edition, citing people involved in the transaction that it did not name. Goldman has the right to sell part of its stake, up to $75 million, to the Russian firm. (AP Photo/Marcio Jose Sanchez, File) (credit:AP)
2011: Facebook launches the timeline(07 of09)
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Many users were concerned that this major revamp of their Facebook page was mandatory and that the timeline would unearth old material about them that was somewhat buried in the mountain of information on Facebook.Users could decide who could see that information but not if it was on their friends' Facebook pages.This Friday, May 18, 2012, file photo shows Facebook's headquarters behind flowers in Menlo Park, Calif. Facebook is letting its nearly 1 billion users vote on changes to its privacy policy beginning on Friday, June 1, 2012. This is the second time Facebook let users vote on policy changes. The first time was in 2009 when Facebook was a much smaller, privately held company with about 200 million users. (AP Photo/Paul Sakuma,File) (credit:AP)
2012: Facebook's 'like' button(08 of09)
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In 2010, Facebook introduced a new tool for users to share information about the things on the web that they liked. But, Facebook users who had clicked on the "like" button' for some products began seeing their name and photo used to promote the product.A class-action lawsuit was launched. Nick Begus became part of the class action after his friends saw his name being used to promote a 55-gallon barrel of personal lubricant he had "liked" as a joke. His sarcastic comment — "For Valentine’s Day. And everyday. For the rest of your life" — somehow became part of an ad for Amazon, where the barrel was for sale.As part of the settlement, announced in June 2012, Facebook has to make it clear what the implications might be if they use the "like" button and has to give users the chance to decline to be unpaid endorsers of a product.An economist testified that the new policy could cost Facebook $103 million in lost advertising revenue.A television photographer shoots the Like sign outside of Facebook headquarters in Menlo Park, Calif., Friday, May 18, 2012. Facebook CEO Mark Zuckerberg symbolically opened trading on the Nasdaq stock market inside Facebook headquarters in Menlo Park. Facebook stock is starting trading today, available to the general public for the first time. The social networking site, which was started in a college dorm room eight years ago, would be valued at more than $100 billion according to the price set for shares ahead of today's trading. (AP Photo/Paul Sakuma) (credit:AP)
2012: Datalogix deal(09 of09)
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It's hard to say how much of a flap this one will be, since it's just getting started.Facebook has partnered with Datalogix, a company which tracks customers' purchases when they use a discount loyalty card while shopping, in order to show advertisers whether their ads are working.Privacy groups have expressed concerned about combining online data about ads with offline shopping data, and with how difficult it is for users to opt out. (A shortcut is this link to the Datalogix privacy page, where you can opt out.)Facebook says, "individual user data is not shared between Facebook, Datalogix or advertisers."FILE - In this Jan. 3, 2011 file photo, Facebook CEO Mark Zuckerberg smiles in San Francisco. Facebook Inc. CEO Mark Zuckerberg is speaking at a technology conference in San Francisco on Tuesday, Sept. 11, 2012, It is his first interview since the company's rocky initial public offering earlier this year. (AP Photo/Paul Sakuma, File) (credit:AP)