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What happened to LinkedIn shareholders?

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What happened to LinkedIn shareholders?

In February 2016, following an earnings report, LinkedIn’s shares dropped 43.6\% within a single day, down to $108.38 per share. On June 13, 2016, Microsoft announced that it would acquire LinkedIn for $196 a share, a total value of $26.2 billion and the largest acquisition made by Microsoft to date.

What Multiple did Microsoft pay for LinkedIn?

Building value with business-owners… Microsoft’s $26.2 billion acquisition of LinkedIn (2016) provides an illustrative example of a strategic acquisition – the type of sale that usually garners the most gain for the acquired company’s shareholders.

How much did LinkedIn sell for?

Microsoft’s $26.2-billion acquisition of LinkedIn aimed to grow the professional networking site and integrate it with Microsoft’s enterprise software, such as Office 365.

Was Microsoft’s acquisition of LinkedIn a success?

“In the past five years since our acquisition, revenue has nearly tripled and growth has accelerated,” Nadella said Tuesday afternoon. “LinkedIn has become a leader across multiple secular growth areas spanning B2B advertising, professional hiring, corporate learning and sales intelligence.”

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Does LinkedIn make a profit?

Since basic membership is free, LinkedIn makes a good portion of its revenue from a minority of its users: Only 21\% of total users had premium subscriptions as of March 2016. In 2018, it contributed $5.3 billion in revenue, an increase of $2.3 from 2017.

How much is LinkedIn worth today?

Microsoft announced Monday that it would acquire professional networking site LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion.

How does LinkedIn generate revenue?

LinkedIn Makes Money from five different revenue streams: talent solutions, marketing solutions, sales solutions, learning solutions & premium subscriptions. In the year 2020, LinkedIn generated a revenue of $8 billion, $1.3 billion more than $6.7 billion LinkedIn earned in the year 2019.

How much did Microsoft pay for GitHub?

In 2018, Microsoft made one of its priciest acquisitions ever, spending $7.5 billion on code-sharing site GitHub. It wasn’t the cleanest fit. GitHub is used by over 50 million developers who tend to be outspoken, including when it comes to things they dislike about Microsoft.

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When did LinkedIn sell to Microsoft?

June 13, 2016
Microsoft told investors what it could do with LinkedIn in a PowerPoint presentation it showed on the day the $26.2 billion deal was announced. It was June 13, 2016. Some of those ideas have been implemented since the deal was finalized, three years ago this month.

How much does the CEO of LinkedIn make?

Starting annual salary: $815,000. Pretty straightforward. “On-hire” performance stock award: $25 million.

How does Microsoft make money from LinkedIn?

Microsoft Corporation acquired LinkedIn for $27 billion in December 2016. Most of LinkedIn’s revenue is generated from three of its major services: Talent Solutions, Marketing Solutions, and Premium Subscriptions. Since its acquisition, LinkedIn’s financials have been consolidated with Microsoft’s.

Do millionaires use LinkedIn?

4 in 10 Millionaires use Linkedin. That’s more than x3 more than Twitter and second only to Facebook.

Did Microsoft buy LinkedIn for $26 billion?

REDMOND, Wash., and MOUNTAIN VIEW, Calif. — June 13, 2016 —Microsoft Corp. (Nasdaq: MSFT) and LinkedIn Corporation (NYSE: LNKD) on Monday announced they have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash.

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How much did LinkedIn pay for Salesforce?

May 6, 2016: LinkedIn says it will agree to exclusivity with whichever party agrees to $200 per share. Neither suitor agrees. May 9, 2016: Salesforce comes back with $171, half cash, half stock. May 11, 2016: Microsoft offers $172 all cash, but is open to stock if desired by LinkedIn.

Is LinkedIn’s $196 share price worth it?

“There is no better way to realize that mission than to connect the world’s professionals.” The $196-per-share price tag represented a premium of almost 50 percent over LinkedIn’s stock market value as of Friday, but was still well below the social media company’s all-time high of $270.

What does Microsoft’s LinkedIn deal mean for the company?

For Microsoft, the LinkedIn deal is a chance to reverse a terrible track record with acquisitions, including paying $9.4 billion for phone maker Nokia in 2014 and $6.3 billion for ad business aQuantive in 2007. In 2012, it wrote down its aQuantive acquisition by $6.2 billion, and its cumulative writedowns for Nokia total $8.55 billion.