REDMOND, Wash. — Microsoft has announced a deal to acquire professional networking site LinkedIn for $26.2 billion in cash.
LinkedIn, based in Mountain View, California, has more than 430 million members. Users can network with professionals, upload their resumes and search for jobs on the site.
Microsoft says it is paying $196 for each share of LinkedIn Corp., a 50 percent premium of the stock's closing price of $131.08 on Friday.
LinkedIn shares soared 49 percent before the stock market opened Monday.
According to a Microsoft news release, LinkedIn will retain its brand, culture and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Microsoft CEO Satya Nadella.
“Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction,” the release said.
The transaction is expected to close this calendar year.
The Associated Press contributed to this report.