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Technology Stocks : Microsoft Corp. - Moderated (MSFT)
MSFT 517.81-1.5%Oct 31 9:30 AM EDT

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To: Glenn Petersen who wrote (18881)6/13/2016 7:17:29 PM
From: E_K_S  Read Replies (1) of 19789
 
There are 433 milion profiles/registered users in Linked in. At a purchase price of $29bln, I calculate $66.97 was paid by MSFT for each profile/registered user.

I would think $10/00 - $15.00 per profile would be a fair price to pay as many of those profiles become stale over time. However, I guess MSFT see's enough growth and updates of profiles that over time, the database of profiles becomes larger and richer. The discussion on Bloomberg radio today is that MSFT will be using this rich database of users as future clients to different cloud service CRM products/services.

In essence, it's their list of qualified future customers they can sell directly to, to generate all of these new revenue streams once they overlay their CRM software to harvest sales leads from the acquired Linked-In database.

Not sure the MSFT CEO can pull it off. I think Ballmer paid $8.5Bln for Skype so it's just over 3x that not to mention the failed Nokia buy.

EKS
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