Microsoft buys linkedin

Absolutely astounding. Values each user at about £170 which is insane. Its also wiped 2.6% off the value of MS.

They just love throwing money at companies that are not worth buying.
 
makes perfect sense with the direction they are going, and like apple they have more than enough cash, to just throw around.

its like apple just purchased a Chinese taxi app, like uber for mega money.

you have to relate it to their future direction.
 
holymonk said:
I dont understand it, why not make a better competitor which they can for a fraction of a price.
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that has a hobbit of failing and costing more in the long run, before being written off.

people generally stay with what already has market strength. unless there is a huge difference.

look at facebook alternatives for example and how well they have done
 
MS bought Nokia, then 1 year later wrote off the money.

A couple of years back they bought a social media firm called Beebop or something and that was also a bad investment.

I can understand them buying Linkedin for their future plans but why pay vastly more than it is worth?
 
bainbridge said:
MS bought Nokia, then 1 year later wrote off the money.

A couple of years back they bought a social media firm called Beebop or something and that was also a bad investment.

I can understand them buying Linkedin for their future plans but why pay vastly more than it is worth?
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MS bought an awful lot of talent and knowledge when they acquired Nokia. A failed mobile phone venture doesn't make the investment worthless, I think Nokia could yet surprise a few people with success in other areas. An accounting write off (which they could easily afford) doesn't necessarily mean a future cash flows write off.

As for LinkedIn, they've probably decided that it's the only accessible route into social networking, given that Google Plus failed so casual social networking is extraordinarily difficult to break into, and Facebook is too expensive to reasonably consider as an acquisition target. Given MS's corporate focus, LinkedIn makes a lot of sense from a strategic fit point of view.
 
It's fine having the cash to throw at any investment you desire, but surely they could have negotiated that lower? How does the site even make revenue? I can't remember seeing ads on there, but I've not been on in a while.
 
The biggest ever flop was when AOL bought Bebo for $850M in 2008 and sold it for $10M in 2010. MS are so shrewd though that I doubt in the long run they will make a loss, or much of.
 
The success of the investment depends on how they make LinkedIn and Office work together and I think this is a part of Nadella's plan to move from the current PC dependency to the social cloud.
 
I can't wait for them to roll it into Office 365 so people will have a choice of posting irrelevant junk on my Yammer, LinkedIn or the SharePoint profile page.
 
Zethor said:
The success of the investment depends on how they make LinkedIn and Office work together and I think this is a part of Nadella's plan to move from the current PC dependency to the social cloud.
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absolutely and if you look at the Cortana Bots they showed off, it shows a clear path. how successful it'll be is something different.
but the world seems like its moving very much that way. and its a fight between the three who will get there first and how many users each has.
 
G-MAN2004 said:
It's fine having the cash to throw at any investment you desire, but surely they could have negotiated that lower? How does the site even make revenue? I can't remember seeing ads on there, but I've not been on in a while.
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There is yearly subscriptions and also advertisements are also showing.

It would
 
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