Microsoft has agreed to buy networking service LinkedIn for 26.2 billion U.S. dollars in cash, Microsoft said in a blogpost on Monday, Xinhua reported.
LinkedIn will retain its brand, culture and independence, and Jeff Weiner will stay on as CEO of LinkedIn, said the blogpost.
The deal, which was unanimously approved by the boards of directors of both LinkedIn and Microsoft, is expected to close by the end of 2016, the release said.
The offer price was 196 dollars per share, representing a premium of 49.5 percent based on the closing price of LinkedIn on Friday.
The acquisition is subject to approval by LinkedIn investors and regulators, the blogpost added.
"The LinkedIn team has grown a fantastic business centered on connecting the world's professionals," said Satya Nadella, CEO of Microsoft, in a statement. "Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet."
Weiner told LinkedIn employees in a statement that "little is expected to change" and his employees will keep their titles and managers.
The deal comes as Microsoft eyes to moving away from being a pure software firm, while LinkedIn seeks ways to facilitate growth.
From LinkedIn, which allows users to connect with similar-minded professionals and promotes recruiting and job hunting, Microsoft will gain access to more than 400 million customers and opportunities to sell them business tools, cloud service and other products.
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