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Microsoft buying LinkedIn, deal worth $26.2 billion
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Jun 13, 2016, 08:52 AM
 
Microsoft and LinkedIn today 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 cash on hand. The transaction has been unanimously approved by the Boards of Directors of both LinkedIn and Microsoft.

Current LinkedIn stock price is $131.08, valuing the per-share price at a nearly 50 percent premium. The deal is expected to close this calendar year and is subject to approval by LinkedIn's shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions. Microsoft will finance the transaction primarily through the issuance of new indebtedness.

Microsoft CEO Satya Nadella said of the deal that "the LinkedIn team has grown a fantastic business centered on connecting the world's professionals. 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."

     
Inkling
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Jun 13, 2016, 09:41 AM
 
Looking at today's high-tech, I feel like I'm watching a cartoon where progressively bigger fishes devour smaller ones. Microsoft is paying the the equivalent of the GNP of Latvia, a country with two million people, and for what? A social networking firm for business professionals. Microsoft's CEO claims the goal is to "empower every person and organization on the planet." That's utter bosh. I certainly hope Microsoft doesn't intend to "empower" the ISIS murder machine. But beyond that, as an independent entity with but a single purpose, Linked-in might have served the interests of its members well. Now it must dance to Microsoft's tune. I can't help but suspect that may not turn out well. Look at what Microsoft's purchase of Nokia has done for that company.
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iphonerulez
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Jun 13, 2016, 09:42 AM
 
That sure seems like a pretty steep premium to pay for a company. I guess Wall Street will be praising Microsoft for buying this company but I don't quite see what's so great about it. I've never quite understood the value of LinkedIn, so naturally the purchase leaves me somewhat puzzled. Microsoft has plenty of money to throw away at acquisitions so I suppose it's not that big an impact on Microsoft nor will it affect Microsoft's stock in a negative way.

It definitely seems like a great deal for LinkedIn shareholders whose stock has been down for a number of months. One could have bought it for around a $100 a share earlier in the year and this huge gain in value would have been awesome. I'd never considered buying LinkedIn even at that reduced price because I just don't understand how the company earns revenue. LinkedIn's fundamentals seemed so poor. I guess it's better to be lucky than smart.
     
DiabloConQueso
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Jun 13, 2016, 09:55 AM
 
'I certainly hope Microsoft doesn't intend to "empower" the ISIS murder machine.'

Oh, wow. That's not just a slippery slope, that's falling head-first off of a very tall cliff.
     
Mike Wuerthele
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Jun 13, 2016, 10:12 AM
 
This seems like a terrible deal, and I'm just not seeing how it promotes Office at all. This is (theoretically) a social network of professionals. I'd think they already know how to use Office.
     
coffeetime
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Jun 13, 2016, 11:19 AM
 
That's the end of LinkedIn. Microsoft is never be able to keep anything alive. I wonder how Skype is doing.
     
Charles Martin
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Jun 13, 2016, 12:14 PM
 
Skype's doing fine; indeed, if anything Microsoft has been extremely conservative with any changes. We use it a lot for podcast recording (many, many podcasters do) and it works reasonably well (about like it always has).

I think MS's price on this deal is off by a couple of decimal places, but apparently they didn't learn a thing from buying Nokia. Soooo glad Tim doesn't waste this level of money.
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Stuke
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Jun 13, 2016, 12:23 PM
 
Get ready for a new level of "time to upgrade to Windows 10" advertising on your basic LinkedIn screen. I have been on LinkedIN from its start and appreciated the independent professional network. Not being a MS fan means I'm saddened by this news.
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coffeetime
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Jun 13, 2016, 01:14 PM
 
Let's hope MS is treating LinkedIn the same way as it is treating Skype.
( Last edited by coffeetime; Jun 13, 2016 at 04:52 PM. )
     
Steve Wilkinson
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Jun 17, 2016, 12:20 AM
 
I have to agree with Charles, Microsoft seems careful with recent acquisitions. So far - knock on wood - they haven't mucked Skype up, and I was really worried about Minecraft. So far, things seem OK.
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