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pwhitehead

macrumors 6502
Original poster
Jul 19, 2011
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Microsoft (MSFT, Tech30) is paying $196 per share for LinkedIn (LNKD, Tech30), a 50% premium over the stock's closing price on Friday. Shares of LinkedIn soared to near that purchase price in premarket trading Monday following the announcement, while shares of Microsoft slipped 3%.

LinkedIn had $3 billion in revenue last year, up 35% from the year before. It has 433 million members worldwide, up 19%.

But its shares had plunged 42% so far this year, before the deal was announced, after it warned in February of disappointing revenue and profits ahead. The stock had previously traded at a very high price relative to earnings forecasts, based on the assumption that growth would continue at a break-neck pace. The more modest growth forecast sent shares lower.

The LinkedIn brand will continue after the deal is closed later this year, the companies said. Jeff Weiner will remain CEO of LinkedIn, reporting to Microsoft CEO 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."
http://money.cnn.com/2016/06/13/technology/microsoft-linkedin/index.html?adkey=bn

Is this a good or bad thing? Will Microsoft kill Linkedin? What now happens to lynda.com? Will Microsoft get lynda.com too? I'm a little worried, what are your thoughts?
 

yaxomoxay

macrumors demi-god
Mar 3, 2010
5,616
30,607
Texas
As by title... opinions?
[doublepost=1465826824][/doublepost]
Is this a good or bad thing? Will Microsoft kill Linkedin? What now happens to lynda.com? Will Microsoft get lynda.com too? I'm a little worried, what are your thoughts?

I wouldn't be worried. LinkedIn was stagnant, while it's a great idea just poorly developed. I think that MSFT can help it
 
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yaxomoxay

macrumors demi-god
Mar 3, 2010
5,616
30,607
Texas
How's that? Anyone who ever used LinkedIn to find a job would disagree. You can suggest tweaks for the UI but to say it is poorly developed demands exposition.

LinkedIn should not be used to find a job. It should be used to communicate with professionals, and to gain credibility. It is also a way to get somewhat connected.
Finding a job is just a possibility there.
Many HR managers go and check LinkedIn before offering jobs.
 
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pwhitehead

macrumors 6502
Original poster
Jul 19, 2011
342
100
new jersey
LinkedIn should not be used to find a job. It should be used to communicate with professionals, and to gain credibility. It is also a way to get somewhat connected.
Finding a job is just a possibility there.
Many HR managers go and check LinkedIn before offering jobs.
You're 100% right! I only use Linkedin to connect with people who I work with and connect with people that work for the companies that I love. It does help with finding a job if you're desperate though..
 
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webbuzz

macrumors 68000
Jul 24, 2010
1,906
6,421
How's that? Anyone who ever used LinkedIn to find a job would disagree. You can suggest tweaks for the UI but to say it is poorly developed demands exposition.
My reply to your Zune comment was mostly sarcastic.
 
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yaxomoxay

macrumors demi-god
Mar 3, 2010
5,616
30,607
Texas
From Nadella:

Team,

I'm excited to share that today Microsoft announced a deal to acquire LinkedIn. You can see how Jeff Weiner, the CEO of LinkedIn, and I envision the opportunity ahead in this public presentation.

This deal brings together the world's leading professional cloud with the world's leading professional network. I have been learning about LinkedIn for some time while also reflecting on how networks can truly differentiate cloud services. It's clear to me that the LinkedIn team has grown a fantastic business and an impressive network of more than 433 million professionals.

Given this is the biggest acquisition for Microsoft since I became CEO, I wanted to share with you how I think about acquisitions overall. To start, I consider if an asset will expand our opportunity — specifically, does it expand our total addressable market? Is this asset riding secular usage and technology trends? And does this asset align with our core business and overall sense of purpose?

The answer to all of those questions with LinkedIn is squarely yes. We are in pursuit of a common mission centered on empowering people and organizations. Along with the new growth in our Office 365 commercial and Dynamics businesses this deal is key to our bold ambition to reinvent productivity and business processes. Think about it: How people find jobs, build skills, sell, market and get work done and ultimately find success requires a connected professional world. It requires a vibrant network that brings together a professional's information in LinkedIn's public network with the information in Office 365 and Dynamics. This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you're trying to complete. As these experiences get more intelligent and delightful, the LinkedIn and Office 365 engagement will grow. And in turn, new opportunities will be created for monetization through individual and organization subscriptions and targeted advertising.

Jeff and I both believe we have a significant opportunity to accelerate LinkedIn's growth and the value it brings to its members with Microsoft's assets and scale. In fact, when Reid Hoffman, the founder of LinkedIn, and I spoke about the opportunity for us to come together, he called it a "re-founding" moment for LinkedIn and an opportunity to reach the mission the company set out on 13 years ago.

The opportunity for Office 365 and Dynamics is just as profound. Over the past decade we have moved Office from a set of productivity tools to a cloud service across any platform and device. This deal is the next step forward for Office 365 and Dynamics as they connect to the world's largest and most valuable professional network. In essence, we can reinvent ways to make professionals more productive while at the same time reinventing selling, marketing and talent management business processes. I can't wait to see what our teams dream up when we can begin working together once the deal closes, which we expect will happen this calendar year.

A big part of this deal is accelerating LinkedIn's growth. To that end, LinkedIn will retain its distinct brand and independence, as well as their culture which is very much aligned with ours. Jeff will continue to be CEO of LinkedIn, he'll report to me and join our senior leadership team. In essence, what I've asked Jeff to do is manage LinkedIn with key performance metrics that accrue to our overall success. He'll decide from there what makes sense to integrate and what does not. We know that near term there will be no changes in who reports to whom so no reporting relationships at Microsoft will change in that regard. This approach is designed to keep the LinkedIn team focused on driving results while simultaneously partnering on product integration plans with the Office 365 and Dynamics teams. During the integration, we'll pick key projects where we can go deep together that will ultimately result in new experiences for customers. Kurt DelBene will lead the overall integration efforts at Microsoft in close partnership with Qi Lu and Scott Guthrie.

I'm on the LinkedIn campus today in California and will host a call for investors at 8:45 a.m. PT with Jeff, Brad and Amy -€” please join if you can. Following that, I'll then spend the day meeting with the LinkedIn team. Tomorrow, I'll host a special Microsoft employee Q&A -€” I hope you can make it.

So far, what I've learned about the LinkedIn team is how much our cultures share many of the same attributes. We both care deeply about individual and collective growth, and find deep meaning in the work we do to make a difference in our world. Together we'll do just that.

While I'm in northern California sharing our vision to empower professionals, the Xbox team is in southern California at E3 sharing our vision to empower gamers. I encourage you to check out the E3 press briefing, which starts at 9:30 a.m. Pacific Time.

Finally, if you're not on LinkedIn, join up now and start using and learning more.

Satya
 
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jarodlee88

macrumors member
Jun 12, 2016
40
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Isn't that a little overpriced for LinkedIn? I know Microsoft can afford it but it's a bit high for a social media.
 
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C DM

macrumors Sandy Bridge
Oct 17, 2011
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Seems like it's certainly been good for LinkedIn's stock price.
 
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jayducharme

macrumors 68040
Jun 22, 2006
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God help us.... LinkedIn was the only social network I bothered using, for business connections. I understand how the company fits in with MS's strategy. But I'm sure it won't be long before MS gets the whole site bolloxed up.

The opportunity for Office 365 and Dynamics is just as profound.

Like I was saying...
 
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