Microsoft really owns LinkedIn

Bid war: That's why Microsoft paid so much for LinkedIn

Microsoft announced in mid-June that it would take over the career network LinkedIn. Above all, the purchase price of the equivalent of 23.3 billion euros caused astonishment. Now the US Securities and Exchange Commission provides insight into how this sum came about.

Violent bidding war

Microsoft's announcement that it would pay $ 196 per share for the takeover of LinkedIn, which was a whopping 50 percent premium to the current value, had raised the question of many observers as to how this extremely attractive offer for the career network came about. The US Securities and Exchange Commission is now providing precise details on the course of the negotiations and how this large sum could come about.

Accordingly, LinkedIn boss Jeff Weiner met with Microsoft CEO Satya Nadella on February 16, 2016 to talk about ways to improve the business relationships of the two companies. "Among other things", the possibility of a takeover was also "mentioned" for the first time.

On March 10th and 14th, Weiner spoke to other companies about the possibility of a collaboration or even takeover. The companies are referred to in the report to the SEC as "parties A, B and C", but according to MSPowerUser, Recode identified them as Salesforce, Google and Facebook.

On March 15, LinkedIn boss Jeff Weiner turned to Satya Nadella to inform him that others had also shown interest in taking over his company. Nadella then held the prospect of a meeting with the supervisory board regarding a possible offer. Jeff Weiner, Satya Nadella and Reid Hoffman (from left)

Microsoft wins with cash

In the course of the next few weeks, according to the available SEC information, a classic bidding war should have broken out, which Google and Facebook apparently did not want to continue to fight at a bid price per share of 160 dollars. After another round of bids, Microsoft then offered $ 196 per share in cash, while Salesforce increased it to $ 200, which should, however, be paid mainly in shares. As the now known deal shows, LinkedIn ultimately opted for the Microsoft offer.

Microsoft, Microsoft Corporation, Ceo, Satya Nadella, Linkedin, Reid HoffmanMicrosoft
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