3/16/2023 0 Comments Linkedin stock buyIn other words, LinkedIn wasn’t selling ads the way people expected it to. digital ad revenue would fall from 35 percent growth in 2015 to less than 10 percent growth this year. Research firm eMarketer predicted LinkedIn’s U.S. When LinkedIn reported Q4 earnings earlier in February, one of the concerns was that its ad business grew just 20 percent for the quarter year over year that compared to growth of 56 percent in the same quarter the year before. While recruitment services are the big sales driver at LinkedIn, advertising represents roughly 18 percent of LinkedIn’s business, a significant segment that has been trending in the wrong direction. Remember that heady time? Investors did, which was one of the issues. Microsoft bought LinkedIn for $196 a share, which is a very nice bump from its current price, although that’s still much lower than its high of nearly $270 back in early 2015. Clearly, Weiner and LinkedIn’s board agreed, starting talks just after its troubled February report in which the company had lowered its forecasts. LinkedIn’s stock was down more than 43 percent since July of last year, and there wasn’t much reason to believe it would regain that value anytime soon. So why did LinkedIn sell, especially after CEO Jeff Weiner had long touted it as an independent entity? In the deal, which still has to receive the expected regulatory approvals, Microsoft paid $196 a share, a 50 percent premium on LinkedIn’s $131 closing price on Friday. LinkedIn is now "Microsoft-owned LinkedIn," a distinction that cost Microsoft just a little north of $26 billion.
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