Microsoft just paid $26 billion for linked-in in cash. So imagine a Microsoft executive going to the cash machine with the corporate ATM card clicking on cash withdrawal
then “other amount”.
Now enter amount: $26 billion.
Are you sure that is the correct amount?
Yes or no? Yes
It is 33 times 2015 EBITDA of $780 million! Tech company evaluation still appear over inflated when many business fail to achieve 4-5 EBIDTA. Anyhow fantastic story of how digital investments can be extremely lucrative. Between 2003 when it launched and 2011 they received $103 million in investments and now those few investors look set to split a $26 billion cake together with the founders…..not a bad return. Still some impressive figures with over 400 million users of which 106 million are active, 24 languages and 9200 employees. Still incredible that a few techies set up a business and a decade later they sell it for more than 99.5% of large old conglomerate industrial business are worth after a century of delivering shareholder wealth.