LinkedIn is a much bigger and riskier deal than Microsoft has ever done before
Wall Street had mixed reactions to Microsoft's surprise announcement on Monday that it would buy LinkedIn for $26.2 billion. One firm, Jefferies, titled its instant analysis about the deal, "Large Acquisition, Large Valuation, Large Risk," and compared it with past Microsoft acquisitions Skype, Nokia, and aQuantive. "Most would categorize at least two of those three prior acquisitions as missteps, and the third is difficult to assess given the Skype brand expansion within Microsoft," wrote Jefferies.
But LinkedIn is a lot bigger deal than those previous acquisitions, as this chart from Statista shows. As Jefferies writes, "We expect similar results with this acquisition, except this one is much bigger at more than a year of free cash flow, so we'd expect the effect (and the risk) to be that much greater."
Statista
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- RBI announces auction sale of Govt. securities of ₹32,000 crore
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more