Monday, June 13, 2016

The price of LinkedIn is considered high – New Technology

Microsoft buys professional network LinkedIn for the corresponding 215 billion. A high price, analysts said.

The price of $ 26.3 billion above the expected, when compared with, for example Facebook. It believes Christopher Lindstrom, an analyst at research firm Redeye. The prize, which is estimated at $ 196 per share, corresponding according to him, around $ 247 per unique monthly users on LinkedIn, which has about 400 million registered users, of which about 106 million are active.

– It is well paid. In relation to Facebook valued at $ 200 per active user takes LinkedIn therefore higher paid, said Christopher Lindstrom said.

Probably sees Microsoft profit potential by coordinating able to channel users active on LinkedIn on the software giant’s own products, think Christopher Lindstrom.

LinkedIn, which possesses the world’s largest network of job seekers, has been worse than expected advertising sales. At the beginning of the year collapsed the company’s share of over 43 percent. But Christopher Lindstrom do not think it is the primary reason behind the sale.

– They do not value based on the last quarterly report, but looks at potential users in the long term. These kinds of discussions about the sale usually have lasted very long. The growth of users on LinkedIn have not gone up as much as expected. But perhaps they went out with the plan of selling now because they thought it was a good location, says Christopher Lindstrom.

LinkedIn will operate as an independent subsidiary, according to Microsoft CEO Satya Nadella said in a statement. Both companies’ boards have approved the deal, which is expected to be complete by the end of the year.

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