By Barbara Ortutay, Technology Writer
NEW YORK (AP) --In a surprise move, Microsoft said Monday that it is buying LinkedIn for about $26.2 billion, a deal that could bring subtle but significant changes for the professional network's more than 430 million members.
LinkedIn will remain an independent unit of Microsoft. It will keep its name, and current CEO Jeff Weiner will stay on and report directly to Microsoft CEO Satya Nadella. LinkedIn lets members network with other professionals, upload their resumes, catch up on career advice and search for jobs.
For Microsoft, the deal presents an opportunity to cement itself as the tech company for the world's professionals, helping them find jobs, learn new skills and do their work. Microsoft will also look for ways to combine Microsoft's software for workers with the information stored in LinkedIn's online professional network.
For instance, Nadella told The Associated Press that Microsoft's digital assistant Cortana could mine LinkedIn for helpful data. "Cortana can wake up before you go into a meeting and inform you about all the people you are meeting for the first time and the connections you have with them," he said.
Similarly, he said, LinkedIn's "news feed" – which provides articles and updates from your contacts on the network – could highlight information that's relevant to a project you might be working on using Microsoft's Office 365 software. LinkedIn users might see changes in the first year after the deal is closed, Nadella said.
Microsoft may also integrate its business software with LinkedIn's growing business of providing sales professionals with contacts and information to help make sales to large companies.
LinkedIn, based in Mountain View, California, is by far Microsoft's largest acquisition – much larger than Skype, which the company bought for $8.5 billion in 2011. Microsoft Corp., which is in Redmond, Washington, is paying $196 for each share of LinkedIn Corp., a 50 percent premium over the stock's closing price of $131.08 on Friday. The deal is expected to close this year.
LinkedIn's business and share price have been rocky recently. In February, it gave a surprise forecast for slower growth that led to a big sell-off, wiping out nearly $11 billion in market value. The company said at the time that its adjusted earnings would be 55 cents a share on revenue of roughly $820 million. Its stock climbed higher after it reported better than expected results for the first quarter, though not enough to recover from the earlier plunge.
In an email to LinkedIn employees posted online , Weiner asked them to give themselves "some time to process the news."
"You might feel a sense of excitement, fear, sadness, or some combination of all of those emotions. Every member of the exec team has experienced the same, but we've had months to process," he wrote. "Regardless of the ups and downs, we've come out the other side knowing beyond a shadow of a doubt, this is the best thing for our company."
Microsoft has a mixed track record with acquisitions, having written off more than $10 billion it poured into companies such as cellphone maker Nokia and an online ad firm called aQuantive. Nadella expressed confidence that this one will succeed, citing the company's more successful takeovers of Skype and Minecraft.
LinkedIn shares soared 47 percent to $192.50 in midday trading Monday. Microsoft shares slipped nearly 3 percent to $50.01.
California governor signs law to protect children from social media addiction
California will make it illegal for social media platforms to knowingly provide addictive feeds to children without parental consent beginning in 2027 under a new law Democratic Gov. Gavin Newsom signed Friday.
California follows New York state, which passed a law earlier this year allowing parents to block their kids from getting social media posts suggested by a platform's algorithm. Utah has passed laws in recent years aimed at limiting children's access to social media, but they have faced challenges in court.
The California law will take effect in a state home to some of the largest technology companies in the world. Similar proposals have failed to pass in recent years, but Newsom signed a first-in-the-nation law in 2022 barring online platforms from using users' personal information in ways that could harm children. It is part of a growing push in states across the country to try to address the impacts of social media on the well-being of children.
"Every parent knows the harm social media addiction can inflict on their children — isolation from human contact, stress and anxiety, and endless hours wasted late into the night," Newsom said in a statement. "With this bill, California is helping protect children and teenagers from purposely designed features that feed these destructive habits."
The law bans platforms from sending notifications without permission from parents to minors between 12 a.m. and 6 a.m., and between 8 a.m. and 3 p.m. on weekdays from September through May, when children are typically in school. The legislation also makes platforms set children's accounts to private by default.
Opponents of the legislation say it could inadvertently prevent adults from accessing content if they cannot verify their... Read More