![]() LinkedIn will be an independent business managed by the company's current CEO Jeff Weiner, and its financials will be reported in Microsoft's Productivity and Business Processes segment. When the suspension in trading was lifted, Microsoft's shares fell 2.6%. While LinkedIn shares rose 47% following the news, trading of Microsoft's stock was halted. The transaction should be completed by the end of the year. All Rights Reserved.On June 13 th, Microsoft ( NASDAQ: MSFT) announced that it would be buying LinkedIn ( LNKD) for $26.2B in an all-cash acquisition to be funded by new debt issuance. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. Factset: FactSet Research Systems Inc.2019. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Shares of Twitter ( TWTR) popped as much as 6% after the Microsoft-LinkedIn acquisition was announced. The surprise deal helped renew hope that another struggling social network - Twitter - might be sold too. "I don't think anyone was expecting this particular news," said Nelson of Morningstar. Though there had been some speculation that Microsoft would make a large scale acquisition within the next 12 months, LinkedIn was not on investors' short list of guesses. The jump in LinkedIn shares early Monday lifted his net worth by more than $900 million. Reid Hoffman, the cofounder and chairman of LinkedIn who is also the company's controlling shareholder, will get $2.9 billion for the sale of his shares. It is dwarfed by the $67 billion purchase of EMC ( EMC) by Dell announced last year, which has yet to close.Īt the same time, the Microsoft deal values LinkedIn at significantly more than Yahoo ( YHOO), which is weighing bids believed to priced the company's core business at less than $10 billion. This is set to be the 5th largest tech deal ever. "Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365." "The LinkedIn team has grown a fantastic business centered on connecting the world's professionals," Nadella said. Jeff Weiner will remain CEO of LinkedIn, reporting to Microsoft CEO Satya Nadella. The LinkedIn brand will continue after the deal is closed later this year, the companies said. Related: LinkedIn switching to 'discretionary' vacation policy Scott Kessler, an analyst at S&P Global Capital, says he's skeptical of the transaction because it's a "large deal at a premium with a lot of work to be done." ![]() Why? Investors assumed that growth would continue at a break-neck pace, and the more dour growth forecast sent shares plunging. The stock had previously traded at a very high price, relative to how much it was expected to earn. The big spark came in February when the company warned of disappointing revenue and profits ahead. Shares had plunged 42% this year, before the deal was announced. ![]() It has 433 million members worldwide, but its growth has been slowing. ![]() LinkedIn ( LNKD) had $3 billion in revenue last year, up 35% from the year before. But over the past six months, despite still being a sizable business, shares have started to sink as Facebook ( FB) has soared. LinkedIn had a long, multi-year run as the best-performing social network in the stock market. LINKEDIN STOCK PRICE BEFORE MICROSOFT OFFER PASSWORDRelated: Hackers selling 117 million LinkedIn password In the future, Microsoft might even deploy Cortana as a virtual assistant to write the email too, based on that LinkedIn data.įor HR professionals, Microsoft could integrate LinkedIn work history of interested candidates to determine compensation offers and job placement. Together, the two companies could build new types of services that would be particularly useful for workers in sales and HR roles, according to Rodney Nelson, lead Microsoft analyst at Morningstar.Ī sales rep could look up someone he's pitching to through Outlook and see their LinkedIn information while writing an email pitch. ![]()
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