DrDulya Market Analysis

Microsoft buying LinkedIn for $ 26.2 billion

Unforeseen and stunning news in the world of "Mergers and Acquisitions": Microsoft announced that it acquires a social network to search for business contacts LinkedIn, for $26.2 billion - 196 dollars per share. The total number of users of social network is about 433 million. Purchase has already been approved and confirmed by both companies.

The price of 196 dollars per share is much higher than the real value of the shares on the stock exchange at the close on Friday (June 10) the price fluctuated at the level of 131.08 dollars per share.

LinkedIn remains the same social network as before, but this time under the direction and as part of Microsoft's business. Director General of LinkedIn Jeff Weiner will report to Satya Nadella.

The merger of major brands is beneficial to both parties.
For Microsoft it's part of the missing puzzle in the strategy of businesses and services. Now the company is engaged in software engineering and a small investment in the production of mobile phones. LinkedIn will greatly expand the audience of users both from view social networking as well as in terms of professional content, in particular, help to develop the production and sale of communication tools through the acquisition of Yammer. This will be a potential sales channel for existing products which will integrate communication services.

Nadella informed that the interaction of LinkedIn, Microsoft Office 365 and Dynamics will provide comprehensive data services growth. LinkedIn will have a very large number of possibilities, given the scale of the Microsoft software development and this will greatly enhance the competitive position.

It is planned to realize the synergy of cloud services software maker and the existing network communication social network. This should improve the way people interact and will expand the functionality.

Although LinkedIn is now going through hard times and the current share price is significantly below the maximum of the last 12 months - 258 dollars per share, the company still remains the best technology company on the stock market.

Microsoft has never been a successful company, if we consider it from the point of view of social networking, even though a large amount of investment in Facebook, a social network before it began an IPO. But buying LinkedIn can change everything and create a new competitor in the social networking market.

Active LinkedIn audience of 105 million people a month, all registered about 433 million. Locations totals 200 countries. About 60% of the traffic is mobile, and the number of pages viewed a site in the quarter is an incredible 45 billion.

Microsoft has reported that its shares fell more than 3% in recent trading and at some point reached in the assessed value of 49.92 dollars per share.
LinkedIn shares showed growth parameters up to 47% and stopped at setting 193 dollar per share during trading data.

Interesting, that it is a turning point in the world of finance and investment. The cost of shares of the company LinkedIn, rose by $62 per share (an increase of ~ 45%). Those who had inside information, were able to make a fortune on such a large jump.

And what do you think about this purchase?
 
Not sure about how US will regulate this digital currency as it is decentralized and if it could be monitored like other currency notes then people or investors may not take any interest in it, and it may go down in my opinion. However bitcoins market is really going crazy these days..
 
me richer

Well I sold half of my buy. I made a $5,000 investment in bitcoin when it was lower now I wish I made more. I sold it off for $12,180.39 if I could go back I would invest $50,000 in bitcoins.
 
How Brexit influences UK banking sector?

Brexit is a highly discussed topic, but I would like to specify its influence on UK banking sector. As someone said Brexit is “a leap into uncertainty”. This thesis has been improved by today’s trading activity in the market. Top 5 UK banks have plunged steadily: Lloyds, Royal Bank of Scotland, Barclays, Standard Chartered and HSBC are down 25%, 23%, 22% 10%, 8% respectively. We may conclude that the vote to leave the EU was a real surprise to the market. I have filtered out major financial news on these Banks and can summarize that there are 5 main reasons of such plunge:

1. Expected decline in house prices by by 10-18% (will influence such banks as Lloyds with big asset allocations in mortgages);
2. Increase in non-performing loans which will be led by pound depreciation;
3. Possibility of rate hike to the monetary shock;
4. Insertanty in trade terms with EU;
5. A threat of a next big recession.

I would like to hear your opinions on the topic. Is market overpriced above treats and this is a good time to pick up banking sector assets or this is only begining of further contraction?
 
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