Argus On LinkedIn Following Microsoft Buyout News: Acceleration Likely Under Microsoft

Argus' Joseph Bonner downgraded LinkedIn Corp (NYSE: LNKD) to hold after Microsoft Corporation (NASDAQ: MSFT) announced Monday it had agreed to acquire LinkedIn for $196.00 per share. Argus downgraded the company after the share price reached past the analyst's former target price of $190.00.

Bonner noted that LinkedIn's turnaround could have played a part in Microsoft's purchase. "LinkedIn became something of a 'fallen angel' after issuing weaker-than-expected 2016 guidance in February. After a turnaround in 1Q16, Microsoft may have thought it opportune to make bid for LNKD," said the analyst.

Related Link: Why Wunderlich Endorses Microsoft's LinkedIn Acquisition

LinkedIn Still to Accelerate After Acquisition

Furthermore, Bonner believed LinkedIn's member growth, engagement and ease of use would both increase in the future despite Microsoft's acquisition. This will take place under Jeff Weiner's management as Microsoft will protect LinkedIn's independence according to Bonner.

At the time of writing, LinkedIn traded at $192.16, down 0.03 percent, while Microsoft was down 0.78 percent at $49.76.