dennisgorelik: (2009)
Dennis Gorelik ([personal profile] dennisgorelik) wrote2016-06-22 06:18 pm
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Microsoft buys LinkedIn for $26.2B

That was unexpected and I even thought it is a joke. But it is not a joke.

Why would Microsoft buy the largest job board?
Microsoft is in a different business.


Responses:
1) What a terrible time to be burning that much cash, just before the next recession, and on a resume site. I was starting to see some good things coming from Microsoft but this makes me shake my head and question leadership big time.

2) I suspect major LinkedIn investors shopped around the company and financial-engineered a sophisticated kickback
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[identity profile] hervejoncour.livejournal.com 2016-06-23 01:57 am (UTC)(link)
It's insane, this LinkedIn is a website which sends stupid messages to your mailbox once in while even though the last time you visited it 10 years ago.

I have no idea what MSFT will gain by acquiring LinkedIn. At least with Nokia there was an idea of moving into the handheld market.

26B$ for a web site ...

I just read a wonderful quote recently " ... we were promised people on Mars and got 140 characters ..."
dennisgorelik: 2020-06-13 in my home office (Default)

[personal profile] dennisgorelik 2016-06-23 04:27 am (UTC)(link)
LinkedIn is the largest job board (huge number of candidates profiles). That's where most of its value is.
But Microsoft is paying hefty premium on top of LinkedIn actual value.

[identity profile] hervejoncour.livejournal.com 2016-06-23 12:22 pm (UTC)(link)
As well as Monster, Dice etc etc. Microsoft headcount is stable enough, so what are they going to do with all these profiles. Sell it? It's completely different business.
dennisgorelik: 2020-06-13 in my home office (Default)

[personal profile] dennisgorelik 2016-06-23 12:26 pm (UTC)(link)
Yes: that's another problem.
There is no good reason for Microsoft to go into job boarding business.

My guess is they think that they would be able to extract huge value from LinkedIn outside of job boarding business.
I think Microsoft is wrong about it.

[identity profile] hervejoncour.livejournal.com 2016-06-23 03:04 pm (UTC)(link)
I can't imagine why it has a price tag of 26.2b$. American Airlines has market cap 17.2b$

Anyways, it's someone's else money
Edited 2016-06-23 15:04 (UTC)
dennisgorelik: 2020-06-13 in my home office (Default)

[personal profile] dennisgorelik 2016-06-23 08:27 pm (UTC)(link)
> it has a price tag of 26.2b$. American Airlines has market cap 17.2b$

I see no contradiction here.

I fly once every few years.
I use LinkedIn several times per week.

[identity profile] hervejoncour.livejournal.com 2016-06-23 08:38 pm (UTC)(link)
Well, I fly about a dozen times a year and use LinkedIn once in 10 years. I guess, I am not a targeted audience.

Why do you use LinkedIn several times a week, if you don't mind?
dennisgorelik: 2020-06-13 in my home office (Default)

[personal profile] dennisgorelik 2016-06-23 10:36 pm (UTC)(link)
I'm finding people for my business network on LinkedIn.
I verify/research my new connections on LinkedIn.

Developers are usually afraid of "distracting" emails that LinkedIn sends.

I am not afraid of emails. I am getting hundreds of emails in my email inbox every day.
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