Several readers have asked for my take on Microsoft’s purchase this week of LinkedIn for $26.2 billion — a figure some think is too high and others think is a steal. I think there is generally more here than meets the eye.
Microsoft definitely needed more presence in social media if it wants to be seen as a legit competitor to Google and Facebook. Yammer wasn’t big enough. LinkedIn fits Redmond’s business orientation and was big enough to show that Satya Nadella isn’t afraid to open up the BIG CHECKBOOK.
A simple financial analysis of the deal shows LinkedIn was way cheaper at $59 per registered member than buying Facebook for $329+ per member (if Microsoft […]