Microsoft’s $26 Billion LinkedIn Acquisition

Consider this: Ebay (EBAY) is valued at $27 billion and earns $2 billion in annual profits. Ross Stores (ROST) is valued at $21 billion and earns over $1 billion in annual profits. Ebay has grown earnings by 14.5% per year for the past decade, and Ross Stores has grown earnings by 19.5% per year for the past decade.

And now consider this: Linkedin (LNKD), which is currently losing money and hasn’t earned a profit since 2013 when it posted a $26 million earnings figure, is getting bought out by Microsoft at a price of $196 per share for a $26.2 billion valuation.

Continue Reading!