S&P Places LinkedIn (LNKD) on CreditWatch Positive Amid Microsoft (MSFT) Deal
S&P Global Ratings said today that it has placed its unsolicited ratings on LinkedIn Corp. (NYSE: LNKD) on CreditWatch with positive implications.
The CreditWatch placement followed LinkedIn's definitive agreement to be acquired by Microsoft Corp. for $196 per share in an all-cash transaction valued at $26.2 billion. LinkedIn's CEO, Jeff Weiner, will remain in place and report to Satya Nedella, Microsoft's CEO.
LinkedIn is the largest professional networking site globally, with significant participation from employers and recruiting firms. The acquisition could accelerate Microsoft's enterprises and mobile software growth. With LinkedIn's 105 million monthly active users and 433 million members, there is a compelling cross selling opportunity. LinkedIn also offers Microsoft an at-scale entry into professional social networking, an area that we believe will see continual healthy growth. We expect the acquisition to close in late 2016.
"The CreditWatch placement is based LinkedIn's agreement to be acquired by Microsoft, an entity with a stronger credit profile," said S&P Global Ratings credit analyst Andy Liu. "We will resolve the CreditWatch placement once the acquisition is completed and raise our ratings on LinkedIn to the level of those on Microsoft."