(P1) Microsoft has just announced one of the biggest deals in its history, per the Telegraph. The company says it will buy LinkedIn for $26.2 billion in cash, or $196 per share, a 50% improvement on its closing price Friday, reports the Wall Street Journal. Microsoft says LinkedIn will “retain its distinct brand, culture, and independence,” while CEO Jeff Weiner will keep his post, reporting to Microsoft CEO Satya Nadella. The deal, approved by both boards and subject to approval by LinkedIn’s shareholders, is expected to close by the end of the year.
(P2) “I’ve been thinking about this for a long time,” Nadella says in a video. “The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” he adds in a release. “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 adds there’s “a lot of excitement” surrounding the deal, which will let both companies “dream big.” LinkedIn’s shares jumped 48% to $194.28 as the deal was announced, while Microsoft’s shares fell 3.3%, per Reuters.
VOCABULARY: retain, distinct, boards, shareholders, accelerate, empower, shares
If you found the passage difficult to read or had problems understanding specific words or idiomatic expressions, please discuss them with your tutor. The following discussion questions should be answered in your own words and with your own arguments.
- Briefly, summarize the content of the article in your own words.
- Do you use Linkedin? Why or why not?
- In your opinion, will the growth of Linkedin accelerate now that they are a part of Microsoft? Why or why not?
- Are there advantages to using the internet to find jobs? Why are why not?
READING COMPREHENSION QUESTIONS:
- How much will Microsoft pay to purchase Linkedin?
- Linkedin will not have the freedom to run its business. (T or F)
- Who is the Chief Executive Officer of Linkedin?
- The CEO of Microsoft made a quick decision to buy Linkedin. (T or F)
- Both companies saw a drop in the value of their shares after the deal was announced. (T or F)
EXPRESSIONS or PHRASES:
What do the following expressions or phrases mean?
- Closing price (P1)
- To close by the end of the year (P1)
- He adds in a release (P2)
- Dream big (P2)
Image source: Microsoft https://news.microsoft.com/2016/06/13/microsoft-to-acquire-linkedin/#sm.0000rvgo7h1e3pcsry7l34ldw47gg#QDiJhcYWLpqEGrQv.97