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[MSFT] Microsoft buying [LNKD] LinkedIn for $ 26.2 billion

This topic contains 4 replies, has 21 voices, and was last updated by  doctordingo 1 year, 11 months ago.

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    Unforeseen and stunning news in the world of "Mergers and Acquisitions": Microsoft announced that it acquires a social network to search for business contacts LinkedIn, for $26.2 billion – 196 dollars per share. The total number of users of social network is about 433 million. Purchase has already been approved and confirmed by both companies.

    The price of 196 dollars per share is much higher than the real value of the shares on the stock exchange at the close on Friday (June 10) the price fluctuated at the level of 131.08 dollars per share.

    LinkedIn remains the same social network as before, but this time under the direction and as part of Microsoft’s business. Director General of LinkedIn Jeff Weiner will report to Satya Nadella.

    The merger of major brands is beneficial to both parties.
    For Microsoft it’s part of the missing puzzle in the strategy of businesses and services. Now the company is engaged in software engineering and a small investment in the production of mobile phones. LinkedIn will greatly expand the audience of users both from view social networking as well as in terms of professional content, in particular, help to develop the production and sale of communication tools through the acquisition of Yammer. This will be a potential sales channel for existing products which will integrate communication services.

    Nadella informed that the interaction of LinkedIn, Microsoft Office 365 and Dynamics will provide comprehensive data services growth. LinkedIn will have a very large number of possibilities, given the scale of the Microsoft software development and this will greatly enhance the competitive position.

    It is planned to realize the synergy of cloud services software maker and the existing network communication social network. This should improve the way people interact and will expand the functionality.

    Although LinkedIn is now going through hard times and the current share price is significantly below the maximum of the last 12 months – 258 dollars per share, the company still remains the best technology company on the stock market.

    Microsoft has never been a successful company, if we consider it from the point of view of social networking, even though a large amount of investment in Facebook, a social network before it began an IPO. But buying LinkedIn can change everything and create a new competitor in the social networking market.

    Active LinkedIn audience of 105 million people a month, all registered about 433 million. Locations totals 200 countries. About 60% of the traffic is mobile, and the number of pages viewed a site in the quarter is an incredible 45 billion.

    Microsoft has reported that its shares fell more than 3% in recent trading and at some point reached in the assessed value of 49.92 dollars per share.
    LinkedIn shares showed growth parameters up to 47% and stopped at setting 193 dollar per share during trading data.

    Interesting, that it is a turning point in the world of finance and investment. The cost of shares of the company LinkedIn, rose by $62 per share (an increase of ~ 45%). Those who had inside information, were able to make a fortune on such a large jump.

    And what do you think about this purchase?



    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.



    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.



    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.

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