The Numbers Don't Lie: What LinkedIn Brings to Microsoft

Microsoft acquired LinkedIn for $26 billion, marking the highest earnings multiple of any takeover that year. The deal values LinkedIn at over 84 times EBITDA, with Microsoft paying a premium compared to Facebook's acquisition of WhatsApp. Despite LinkedIn's slowest revenue growth in its public history, Microsoft aims to increase user engagement by integrating LinkedIn with Microsoft Office. To fund the acquisition, Microsoft issued $19.8 billion in bonds, leveraging investor interest in high-yield corporate debt.

What was the purchase price for LinkedIn by Microsoft?

• $35 billion

• $30 billion

• $26 billion

• $20 billion

How does the value Microsoft paid per LinkedIn user compare to Facebook's acquisition of WhatsApp?

• Microsoft did not pay per user

• Microsoft paid less per user

• Microsoft paid the same per user

• Microsoft paid more per user

What is the theory behind Microsoft's acquisition of LinkedIn?

• To increase LinkedIn's user base

• To combine LinkedIn with Microsoft Office

• To reduce competition

• To diversify Microsoft's portfolio

How did Microsoft fund the LinkedIn acquisition?

• By issuing bonds

• By taking a bank loan

• By using cash reserves

• By selling company shares

What was the total value of bonds issued by Microsoft to fund the LinkedIn acquisition?

• $25 billion

• $30 billion

• $19.8 billion

• $15 billion