Microsoft to buy LinkedIn for $26 billion

[ExFreeper]

Microsoft to buy LinkedIn for $26 billion

Telegraph -  By James Titcomb

Microsoft is buying the professional social network LinkedIn for $26.2 billion (£18.5bn), the two companies have announced.

The news, announced on Monday afternoon, instantly sent LinkedIn's share price soaring by 50 percent. The deal will represent one of the biggest in Microsoft's history.

Microsoft said LinkedIn boss Jeff Weiner would stay in charge and report to Satya Nadella.

“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”

http://www.telegraph.co.uk/technology/2016/06/13/microsoft-to-buy-linkedin-for-26-billion/



http://www.youtube.com/watch?v=-89PWn0QaaY

REDMOND, Wash., and MOUNTAIN VIEW, Calif. — June 13, 2016 — Microsoft Corp. (Nasdaq: MSFT) and LinkedIn Corporation (NYSE: LNKD) on Monday announced they have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash. LinkedIn will retain its distinct brand, culture and independence. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft. Reid Hoffman, chairman of the board, co-founder and controlling shareholder of LinkedIn, and Weiner both fully support this transaction. The transaction is expected to close this calendar year.

LinkedIn is the world’s largest and most valuable professional network and continues to build a strong and growing business. Over the past year, the company has launched a new version of its mobile app that has led to increased member engagement; enhanced the LinkedIn newsfeed to deliver better business insights; acquired a leading online learning platform called Lynda.com to enter a new market; and rolled out a new version of its Recruiter product to its enterprise customers. These innovations have resulted in increased membership, engagement and financial results, specifically:

    19 percent growth year over year (YOY) to more than 433 million members worldwide
    9 percent growth YOY to more than 105 million unique visiting members per month
    49 percent growth YOY to 60 percent mobile usage
    34 percent growth YOY to more than 45 billion quarterly member page views
    101 percent growth YOY to more than 7 million active job listings

“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.”

https://news.microsoft.com/2016/06/13/microsoft-to-acquire-linkedin/

[ABX]

Interesting. if you can't compete with the big social networks (cough, see the Google+ bomb, cough), buy one. It would start to separate MSFT as the professional alternative versus trying to be the same.

[ExFreeper]

Interesting. if you can't compete with the big social networks (cough, see the Google+ bomb, cough), buy one. It would start to separate MSFT as the professional alternative versus trying to be the same.

Yes, this is what monopolies do, they acquire new competitors (i.e. companies/industries) and then suck away their profits, culture, and life.  There are two different cultures in Redmond and LinkedIn's (Mountain View).

[SirLinksALot]

Here's my personal take on why Microsoft did it.

From a long term strategic perspective, this purchase makes sense.

There are clearly areas for integration between LinkedIn and Office 365. Microsoft also owns Skype, so this acquisition rounds off a high quality suite of social & communication tools.

Here's what Satya Nadella might be thinking : Office365+Azure+Dynamics+LinkedIn+Lynda.com

In addition, I'm sure Microsoft thinks it can trim the fat and bring LinkedIn into profitability. LinkedIn's revenue growth has been very strong, but their marketing, development, and expenses have grown even more quickly. Microsoft will certainly increase LinkedIn's negotiating power with regard to marketing/development expenses and try to find synergies to reduce overheads with regard to data centers and office facilities.

Here's where I think the deal is questionable -- Is this really worth $26 Billion?

The ultimate winner here are the shareholders of LinkedIn.  If you are an employee with LinkedIn and have shares in it, better think of cashing out and also --- polish your own resume as there will be redundancies.

[ABX]

Here's my personal take on why Microsoft did it.

From a long term strategic perspective, this purchase makes sense.

There are clearly areas for integration between LinkedIn and Office 365. Microsoft also owns Skype, so this acquisition rounds off a high quality suite of social & communication tools.

Here's what Satya Nadella might be thinking : Office365+Azure+Dynamics+LinkedIn+Lynda.com

In addition, I'm sure Microsoft thinks it can trim the fat and bring LinkedIn into profitability. LinkedIn's revenue growth has been very strong, but their marketing, development, and expenses have grown even more quickly. Microsoft will certainly increase LinkedIn's negotiating power with regard to marketing/development expenses and try to find synergies to reduce overheads with regard to data centers and office facilities.

Here's where I think the deal is questionable -- Is this really worth $26 Billion?

The ultimate winner here are the shareholder of LinkedIn.  If you are an employee with LinkedIn and have shares in it, better think of cashing out and also --- polish your own resume as there will be redundancies.

I think it is a very similar strategy to what Verizon is doing- buying up content providers and internet hubs- especially those that have a foothold in content based ad revenue. They know margins are going to be tighter and tighter for traditional wireless revenue so they are expanding how they generate wireless revenue (ad based versus subscription based). At first the AOL and now Yahoo bids seem like possibly bad moves but they are working those differently than previous suitors.

[geronl]

Why is MS throwing their money away.

This sounds like a worse idea than buying MINECRAFT