5 things to know about the Microsoft-LinkedIn deal

Microsoft on Monday said it is acquiring professional social networking platform LinkedIn in an all-cash deal for $26.2 billion. Microsoft will pay $196 per LinkedIn share, a 50% premium over Friday’s closing price of $131.08.

After the deal, LinkedIn will become part of Microsoft's productivity and business processes unit.

5 things to know about the deal:

1. The deal marks the largest-ever acquisition by Microsoft, after its $8.5 billion purchase of Skype in 2011. Microsoft plans to finance the deal primarily through issuance of new debt.

2. The deal has received unanimous approval of both LinkedIn and Microsoft's board. The transaction is expected to close later this year. 

3. Post the acquisition, LinkedIn will continue to operate as an independent entity retaining its brand identity and culture. Jeff Weiner will continue to remain as the CEO of LinkedIn.

4. Microsoft will be able to benefit from Lynda.com, which LinkedIn had acquired last year for $1.5 billion. Lynda.com is a channel for training videos (web tutorial services). Microsoft will now be able to offer Lynda’s videos in its own software, like the Excel spreadsheets.

5. With this deal, LinkedIn hopes to arrest a fall in growth. The LinkedIn stock had fallen to as low as $101.11 in February from a peak of $269 in February 2015.