Microsoft buys LinkedIn for $26.2B
Jun. 22nd, 2016 06:18 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
dennisgorelikThat 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
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
Re: Executives motivation for merging
Date: 2016-06-23 08:35 pm (UTC)Nadella must be totally incompetent in order to kill LinkedIn and loose all $26B.
Much more likely scenario is partial loss. When LinkedIn stagnates or slowly declines.
If Nadella is not penalized for stagnation and slow decline, but gets acquisition bonus - then it is clearly a perverse compensation incentive.
2) Microsoft already has solid investor and business connection with Facebook.
If they need huge social graph for their Cortana algorithm - they have it.
No need to buy LinkedIn for that.
Re: Executives motivation for merging
Date: 2016-06-23 08:53 pm (UTC)But unless it is a publicly visible multibillion-dollar write-off, nobody would care...
Stagnation would not be welcome for Microsoft as a whole, but specifically at the LinkedIn level would not be too much of a problem for Nadella...
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Facebook is different; MS wants business social graph, that is linkedin, they don't care about causal social... Their business model favors that quite specifically...
Facebook can also become a competitor at any moment, even if the relations are currently good...
Re: Executives motivation for merging
Date: 2016-06-23 10:32 pm (UTC)Spending $26B to protect yourself from something that may possibly happen does not looks like a reasonable purchase.
Re: Executives motivation for merging
Date: 2016-06-24 02:13 am (UTC)http://www.pcworld.com/article/3083064/data-center-cloud/heres-microsoft-ceos-letter-to-employees-about-the-26-billion-linkedin-acquisition.html