AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Linkedin is a microsoft company12/30/2023 ![]() That explains the power of platforms like LinkedIn and other social media platforms like Facebook ( FB) and Twitter ( TWTR). More value leads to even more customers, in a virtuous cycle. Social networks can be quite powerful because of their network effects - i.e., they become more valuable by virtue of having more customers. LinkedIn was cheap compared to other social networks Here’s all the ways in which LinkedIn is benefiting Microsoft shareholders. Microsoft did have to make some concessions about sharing data and letting other platforms use LinkedIn, but ultimately, the deal was approved (See " Why Microsoft beat Salesforce to acquire LinkedIn") It's not a surprise that Salesforce’s ( CRM) Marc Benioff bid for LinkedIn as well - even after the deal was announced - and complained to regulators that the deal would be an antitrust violation. ![]() While the company’s Azure cloud computing platform gets the majority of attention today (for good reason) and consumers like to focus on the company’s Xbox gaming platform, I think Microsoft’s LinkedIn asset could be what makes a big difference in the future of enterprise computing and Microsoft’s further push into sales and HR software. However, 2+years later, I don’t think anyone can say that LinkedIn has been anything but a success for Microsoft. The $26.2 billion price tag was nearly three times larger than Microsoft’s next largest deal - the disastrous $9.4 billion acquisition of Nokia’s ( NOK) phone business. At the time, there were many who thought Microsoft had done what large companies can do from time to time - overpay for a hyped-up acquisition that delivered little in the way of actual profits. Back in June 2016, Microsoft’s ( NASDAQ: MSFT) announced its acquisition of LinkedIn for $26.2 billion, all in cash.
0 Comments
Read More
Leave a Reply. |