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Microsoft buys LinkedIn for $26.2 billion

Discussion in 'BBS Hangout' started by Rockets34Legend, Jun 13, 2016.

  1. Rockets34Legend

    Rockets34Legend Contributing Member

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    http://www.reuters.com/article/us-linkedin-m-a-microsoft-idUSKCN0YZ1FP

    Microsoft Corp (MSFT.O) agreed to buy LinkedIn Corp (LNKD.N) for $26.2 billion in cash, the companies said in a statement on Monday.

    The offer of $196 per share represents a premium of 49.5 percent to LinkedIn's Friday closing price.

    "Today is a re-founding moment for LinkedIn," Reid Hoffman, chairman of LinkedIn's board, said in a statement.

    Jeff Weiner will remain chief executive of LinkedIn, reporting to Microsoft CEO Satya Nadella.

    The deal is expected to close in 2016.
     
  2. s land balla

    s land balla Contributing Member

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    Ugh...too bad I sold my LNKD position a few months ago.
     
  3. ipaman

    ipaman Contributing Member

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    Interesting... I wonder what their plans touch the Windows OS or Office Platforms in any way.
     
  4. TheRealist137

    TheRealist137 Member

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    50% premium, not bad. But msfts history of acquisitions have been putrid lately.
     
  5. PhiSlammaJamma

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    I may be underestimating LinkedIn, I mean I update my stuff and what not, and I could see where it is low cost to maintain and high profit from advertising, but what is the long term value of all these interconnected members for microsoft?
     
  6. Jontro

    Jontro Member

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    Time to update my profile picture.
     
  7. TMac'n

    TMac'n Contributing Member

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    I don't know why but I have a feeling this will end up being another Microsoft failure.
     
  8. JayZ750

    JayZ750 Contributing Member

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    That's a lot of change for a glorified job board - which is basically how LinkedIn makes money.

    LinkedIn growth I'm pretty sure had basically stalled. It's a great move for them. For Microsoft, an acquisition like this makes sense... I just don't know if this is the exact right one.

    Youd almost rather just buy Slack for a crazy crazy ridiculous valuation. Not $26 billion but some crazy premium over their last round. Of course they don't seem like they want to sell. But that would have been the smarter move imo. Follow the fb model -'pay crazy prices but for seriously growing companies. Plus slack is mobile first whereas LinkedIn does t really move the needle there.

    Somewhat of a head scratcher for msft
     
  9. NewRoxFan

    NewRoxFan Contributing Member

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    Seems Msft was attracted to LI's social SW tools and of course content. LI has been moving more towards sales tools... so this helps Msft compete with Salesforce.

    And LI is one humongous database of professionals, executives and other sales targets...
     
  10. A_3PO

    A_3PO Member

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    This is awesome for LinkedIn. Just wow!
     
  11. txtony

    txtony Member

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    I like LinkedIn future quite a bit, but I'm not quite understanding this from MSFT perspective and I'm concern it's a failure for both.
     
  12. JayZ750

    JayZ750 Contributing Member

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    I'm not sure Linkedin's social software tools are worth much. Don't think their sales tools are worth much. I've never heard them really compete with Salesforce in any remotely meaningful way.

    It is a database of people, and a jobs board.

    I think it's the wrong acquisition target for them, but it could work.
     
  13. AMS

    AMS Contributing Member

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    Integration with Skype. Linkedin Interviews. Many services they can now offer.
     
  14. Juxtaposed Jolt

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    Is selling your company for 26 billion really considered a failure?
     
  15. geeimsobored

    geeimsobored Contributing Member

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    Bingo. It's mostly about the data. Even the job board isn't anything special. Linkedin has been struggling for a while since they've had trouble keeping people on Linkedin premium and their revenue model really depends on Linkedin Premium.

    I'm still not sure how Microsoft wants to use the data or the product. We can speculate all day long but the truth is that no one has any idea what MS plans on doing. But someone was bound to buy Linkedin at some point. I expected Facebook (or even Google but I think they're permanently scarred by social media) to eventually buy them out. I guess Microsoft beat both of them to the punch.
     
  16. Invisible Fan

    Invisible Fan Insider Newsletter™ 2X Diamond Member

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    I hope they keep their engineers and learn a thing or two from them.

    Not a fan of MS, but Google/Apple/Amazon are too powerful.

    I don't really use Linkedin other than for career stuff, and I think both sides realize that early on.
     
  17. Mr. Clutch

    Mr. Clutch Contributing Member

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    Great, now I'll have to deal with a bunch of Microsoft ads and offers everytime I use it
     
  18. HillBoy

    HillBoy Contributing Member

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    Can you say Nokia?
     
  19. fallenphoenix

    fallenphoenix Contributing Member

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    I was literally going to buy LNKD today.

    ****ING ****.
     
  20. txtony

    txtony Member

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    Value of each company combined vs as separate going forward is the reference. There are plenty of multi-B deal that end up as failure for both.
     

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