Shares of LinkedIn Corp (LNKD) jumped nearly 50% in premarket trading on Monday after Microsoft Corp (MSFT) agreed to buy the Mountain View, CA-based online professional network operator for $26.2 billion in cash, or $196 per share, inclusive of LinkedIn’s net cash.
The offer represents a premium of 49.5 percent to LinkedIn’s Friday closing price per share.
“Today is a re-founding moment for LinkedIn,” Reid Hoffman, chairman of LinkedIn’s board, said in a statement, adding he “fully support this transaction and the Board’s decision to pursue it, and will vote [his] shares in accordance with their recommendation on it.”
Jeff Weiner will remain chief executive of LinkedIn, reporting to Microsoft CEO Satya Nadella.
The deal is expected to close this calendar year.
Microsoft is trading down 3.61% to $49.62 following LNKD’s M&A news.