Dear MEL
Topic Readers,
Microsoft
to buy LinkedIn for $26 billion
50% higher
price! That’s an extremely generous premium to acquire a publicly-traded
company even in the tech industry. But in the meantime, the share price had plunged
over 40% this year before the announcement was made. Is it a good deal then?
That’s
of course depending on how Microsoft makes use of LinkedIn’s social network for
its core business. Although LinkedIn was not one of the shortlisted acquisition
target companies by financial analysts, they share the same customer base.
Business professionals, who tend to stick with the same platform or application
to keep consistency while avoiding costly and troublesome transition to others.
Just
like any other merger and acquisition, it’s just the beginning for a long way
ahead.
Enjoy
reading and thinking of the value of this acquisition and the fruit of the
integration.
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