Microsoft has officially confirmed the purchase of LinkedIn for a reported $26 billion, Satya Nadella's first big deal as the company's CEO.
The BBC has reported that Microsoft will pay a 50% premium on Friday's closing share price, which comes to $196 a share.
Microsoft announced that LinkedIn will retain the "distinct brand, culture and independence" that it currently has, despite the sudden change of ownership.
Nadella was joined by Jeff Weiner for a sit-down interview today, with Microsoft posting a video of their chat onto their official YouTube channel.
If you would like to watch the video, check out the video below:
After the deal was announced, shares for LinkedIn increased by 47%. To put that into perspective, prices moved from $61.79, to $193.70, following a year whereby LinkedIn's share prices have fell 40%.
This acquisition is the largest made by Microsoft to-date, after paying $7.2bn for Nokia in 2013 and $8.5bn for Skype in 2011. In fact, this takeover is even bigger than that of WhatsApp in 2014, a deal that set Facebook back a reported $19bn.
Microsoft has decided to issue new debt to secure this deal, despite having an appromated $92bn cash pile.
With the announcement of the deal coming so close to Microsoft's annual E3 press conference, it is very possible that we will hear more details later on.
If you would like to know where to watch the E3 press conference, you can watch it on the following page. The event starts at 9:30 a.m. PT, 12:30 p.m. ET or if you'll be watching in the UK, 5:30pm.
