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View Full Version : Microsoft buys LinkedIn for 26.2 Billion in cash!



Harold Mansfield
06-14-2016, 11:46 AM
In case you haven't heard, Microsoft purchased LinkedIn yesterday:


The software giant said Monday morning that it would acquire LinkedIn (http://www.nytimes.com/topic/company/linkedin-corporation?inline=nyt-org) in a $26.2 billion cash deal. The acquisition, by far the largest in Microsoft’s history, unites two companies in different businesses: one a big maker of software tools, the other the largest business-oriented social networking site, with more than 400 million members globally.
http://www.nytimes.com/2016/06/14/business/dealbook/microsoft-to-buy-linkedin-for-26-2-billion.html?_r=0


Personally I think this is a huge deal and great fit for Microsoft who is the big chief in the business services market. I also am glad to see LinkedIn hold on and keep it together long enough to cash out well. Over the last few years I've had my doubts that it could sustain it's lack of innovation, ridiculous amount of spam, and really cumbersome community tools.

I actually stopped even logging into my LinkedIn account. But if MS does something nice with it I'll definitely start using it again.

I think Microsoft, even though they have a knack for screwing things up sometimes, is the best company positioned to do something with it and fold it into their other business services.

What do you guys think?

Freelancier
06-14-2016, 12:28 PM
I predict that Microsoft will write off about 80% of the purchase price within 3 years and try to turn it into a Facebook for Business... and fail.

I think Microsoft has too much cash on hand and can't figure out what to do with it.

Brian Altenhofel
06-14-2016, 12:37 PM
50% premium is far too much. 9x valuation is even worse.

What Microsoft hopes to do is integrated the LinkedIn data with Cortana. They'll probably screw it up the same way they screwed up Skype.

Harold Mansfield
06-14-2016, 12:56 PM
Interesting.

I was thinking that they'd probably integrate LinkedIn with Yammer, Outlook, and MS Exchange services. Yes, I do expect them to mess something up, but they have been really good lately at mobile apps, with the exception of killing off Sunrise.

Fulcrum
06-14-2016, 06:36 PM
Well they gotta do something with the cash they withhold from their vendors (source https://www.microsoft.com/en-us/procurement/supplier-contracting.aspx).

If they paid COD, with no demand for terms (2% 10/net 60), I'd be more impressed.

AndrewLockman
07-05-2016, 10:03 PM
It will also be interesting to see what Microsoft do with Lynda.com the online video learning business that LinkedIn bought for $US 1.5 billion last year.

KristineS
07-06-2016, 11:03 AM
I have a LinkedIn account, but never use it. Might be interesting to see what Microsoft does with it.

Harold Mansfield
07-06-2016, 11:28 AM
It will also be interesting to see what Microsoft do with Lynda.com the online video learning business that LinkedIn bought for $US 1.5 billion last year.

Forgot about that. Good point. I too wonder what the plan is. If they roll Lynda classes in with Office Subscriptions that would be awesome!

LocalSearchSolutions
08-10-2016, 12:04 PM
It will also be interesting to see what Microsoft do with Lynda.com the online video learning business that LinkedIn bought for $US 1.5 billion last year.

Agreed. Haven't seen much done yet...