Back in June 2016 we commented on the Microsoft acquisition of Linked-In and believed it was over the odds to pay 33 times EBITDA. I think we were wrong!
On Tech republic they recently commented on the acquisition
“Microsoft closed its $26.2 billion acquisition of social networking site LinkedIn, with Microsoft CEO Satya Nadella outlining how the two companies will merge.
LinkedIn features and services will be coming to Outlook, Office 365, Dynamics 365, and even MSN.com, with LinkedIn search getting a boost from Active Directory.
The deal has always been about data, and the integrations are just the start of how the two companies will merge their individual data graphs.”
If you look at some of the plans they have in place and on all the changes I have recently seen on Linked in I have no doubts now they will profit from this investment. Think of it this way. There are 467 million Linked-in members, that means over the next few years Microsoft needs to get $56 from each member for some of the linked in services and considering they are charging my business $100 per month for some simple hiring solution they must be well on their way to recover this investment.
Good luck to them, Microsoft took a risk and if the integrations go well with the world’s largest human resources database the sky’s the limit.