Microsoft buys career network LinkedIn

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Acquisitions

Microsoft buys career network LinkedIn

New Mega-Deal in the IT industry: Microsoft takes over 26.2 billion dollars, the Online career network LinkedIn. The US technology giant will lift its largest Deal with cash.

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Microsoft takes on LinkedIn

It is planned to bring the Deal yet this year on the stage. “Together, we can accelerate the growth of LinkedIn,” said Microsoft CEO Satya Nadella on Monday. He also sees potential for the combination of Microsoft’s Cloud and Office services with the Internet network. LinkedIn Chairman Reid Hoffman said: “LinkedIn is now established again in a new way.” Microsoft offers 196 dollars per LinkedIn share – an unusually high mark-up of 49.5 percent to the closing price of Friday.

LinkedIn will remain an independent brand and company CEO Jeff Weiner to keep his Post, as the world’s largest software told the group. Management intends to Finance the purchase of a higher debt. While the LinkedIn stock soared 47 percent to 193,35 dollars in the amount, lost Microsoft documents 2.7 percent to around 50 dollars. In the case of Microsoft, the high purchase price reflected therein, and the recent weak balance sheet with the firms ‘ purchases. The German LinkedIn rival Xing, grew by about seven percent.

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Little luck with acquisitions

2014, Microsoft acquired the mobile phone division of Nokia, in the booming business with Smartphones. The purchase turned out to be, however soon as a fiasco, because Apple and Samsung were dominant. This is the only division of the group recorded in 2015 depreciation and amortization of $ 7.5 billion – more than the price of 7.2 billion. In addition were deleted in the past year, 7800 Jobs.

“I’ve always had great admiration for LinkedIn,” said Nadella in a Video on the Microsoft website. “I talked to Reid and Jeff for some time.” It is fantastic that we are now come together. “But I’ve been thinking for a long time about it.” Microsoft signaled to strengthen the payment offers from LinkedIn, and more targeted advertising.

LinkedIn started in 2002 in the living room of co-founder Hoffman, officially, the service went on 5. May 2003. After a month, the network already had 4,500 members, today there are about 433 million, of which about eight million in the German-speaking countries. The group, headquartered in Mountain View, California, employs around 9,700 full time employees. Users can maintain in the network of professional contacts and make new ones. Companies use the service for the search for suitable personnel.

High purchase price is justified?

Industry observers like Ivan Feinseth showed understanding for the high purchase price of LinkedIn. “It is a fine company and deserves a premium valuation,” said the Analyst from a financial services provider, Tigress Financial Partners. In the past year, the share of the company at a cost of more than 270 dollars.

As a LinkedIn in the spring of 2003, went to the Start, were neither Facebook nor MySpace online, and the Era of Online social networking with services such as Friendster still at the beginning. The basic idea was the same: You, as a user Profile, in which it is presented – but it was in the case of LinkedIn, professional information. Founder Reid Hoffman realized how to make money from it is the data of The members are to be evaluated, so that companies can find the right candidates for open positions.

In the last quarter, LinkedIn revenue increased by 35 per cent to 861 million dollars. The revenue grew in the most important business services for companies that wish to recruit staff by 41 percent to 558 million dollars. The bottom line is that there was a loss of 45.8 million dollars – but that was better than Wall Street analysts expected.

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