LinkedIn Corp. (LNKD) operates a professional networking platform that allows users to produce, administer and share information about their professional identities with their contacts. The platform also allows users to engage with their professional colleagues and share insights and business opportunities. In addition to a desktop application, the company offers a mobile platform that runs across multiple platforms and languages. In June 2016, Microsoft Corporation (MSFT) announced an agreement to purchase LinkedIn for $196 a share in cash, worth $26.2 billion, inclusive of LinkedIn's net cash. LinkedIn shareholders include four large institutional investors, who own more than 5% of the company's shares and profited from the acquisition announcement.
Capital World Investors
Capital World Investors held 7.75 million shares of LinkedIn as of its last 13F filing on March 30, 2016. The stake is valued at $1.49 billion as of Aug. 5, 2016, and represents 6.57% of the company's shares outstanding. Capital World Investors is a subsidiary of the Capital Group Companies, a private investment management firm with $1.39 trillion in assets under management (AUM). The Capital Group companies was founded in 1931 and provides investment services to institutions and consultants, financial advisors, individuals and high net worth investors. The firm seeks out superior long-term returns and compensates its investment professionals according to the returns they generate rather than their AUM. Capital Group Companies is headquartered in Los Angeles, California, and has more than 1,000 associates in offices across the globe. Each of the seven members of the firm's management committee has worked at the firm for more than 20 years.
T. Rowe Price Associates Inc.
T. Rowe Price Associates Inc. (TROW) holds 7.35 million shares of LinkedIn as of its last 13F filing on March 30, 2016. The stake is valued at $1.41 billion as of Aug. 5, 2016, and represents 6.23% of LinkedIn's shares outstanding. T. Rowe Price is a publicly traded asset management firm founded by legendary growth investor Thomas Rowe Price, Jr. The firm manages $776.6 billion in assets and employs more than 6,000 associates in 16 offices worldwide. T. Rowe Price relies on its proprietary research to actively manage its clients' accounts. The firm emphasizes diversification to reduce risk. Its 489 investment professionals provide investment advisory services in both fixed income and equities. T. Rowe Price's clients include individual investors, financial advisors, institutions, financial intermediaries and retirement plan sponsors.
Sands Capital Management, Inc.
Sands Capital Management, Inc. holds a 6.22% stake in LinkedIn as of its last 13F filing on March 30, 2016. The staff-owned asset management firm's 7.34 million shares are worth $1.41 billion as of Aug. 5, 2016. Sands Capital was founded in 1992 and uses proprietary research to pursue a concentrated growth investing strategy. The firm's 37 investment professionals invest with a long-term horizon and use a fundamental process driven by six criteria. The fund's concentrated approach means that it creates portfolios with fewer holdings. The firm believes that concentrated portfolios allow managers to have a greater understanding of their holdings and therefore reduce overall risk. The firm's strategies include select growth, global growth, emerging market growth and specialty strategies.
Morgan Stanley (MS) holds 6.59 million shares of LinkedIn valued at $1.27 billion as of Aug. 5, 2016. The investment firm's stake represents 5.59% of the shares outstanding as of March 30, 2016. Morgan Stanley is a diversified financial services company that provides a wide range of products and services to its customers including wealth management, investment banking, sales and trading, research and investment management. The New York firm is one of the largest financial institutions in the United States and employs more than 50,000 people in offices worldwide. For the fiscal year ending Dec. 31, 2015, Morgan Stanley generated revenues of $35.16 billion and net income applicable to common shares of $5.67 billion. The firm has a market capitalization of $55.64 billion, as of Aug. 5, 2016.