I-Bankers Smokin' L's in the Hot-tub

Episode 66 · June 18th, 2016 · 1 hr 2 mins

About this Episode


Show notes

Samsung Buys Joyent

  • Joyent notes
  • Coverage from Venturebeat
  • "Until today, we lacked one thing. We lacked the scale required to compete effectively in the large, rapidly growing and fiercely competitive cloud computing market. Now, that changes,"

Microsoft acquires LinkedIn

  • Press Release from Microsoft
  • M&A Synergies Theoretical WTF'ing:
    • Slideshare, extended to all Office formats.
    • Login with LinkedIn + AD = SSO won. Also: "Massively scaling the reach and engagement of LinkedIn by using the network to power the social and identity layers of Microsoft's ecosystem of over one billion customers. Think about things like LinkedIn's graph interwoven throughout Outlook, Calendar, Active Directory, Office, Windows, Skype, Dynamics, Cortana, Bing and more."
    • 433 million professionals in LinkedIn (from MSFT internal memo).
    • ...but it's probably all the same people, tho.
    • "Along with the new growth in our Office 365 commercial and Dynamics businesses this deal is key to our bold ambition to reinvent productivity and business processes." (MSFT CEO, from MSFT internal memo)
    • Ads and dumb-AI context: "This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you're trying to complete. As these experiences get more intelligent and delightful, the LinkedIn and Office 365 engagement will grow. And in turn, new opportunities will be created for monetization through individual and organization subscriptions and targeted advertising." (MSFT CEO, from MSFT internal memo)
    • LinkedIn growth since Dec, 2008: "Our team has grown from 338 people to over 10,000, our membership from 32M to over 433M and our revenue from $78M to over $3 billion." (MSFT internal memo).
    • Others from memo: Lydia training inline in MSFT apps; paid content in MSFT apps (a la Spiceworks); HR and recruiting.
  • Deal PR deck - pretty good. I can see how the social graph and all the "semantic web sit" in LinkedIn, crossed with MSFT assets works well.
  • One take on ads, doesn't like the Office angle, cause privacy, but oh wait: Google Apps and GMail
  • It's the 1 dataset MS can keep out of Facebook and Google's hands. https://trackchanges.postlight.com/9-things-microsoft-could-do-with-linkedin-2aec55c2bc72#.iv7cofd13
  • "Microsoft could improve LinkedIn": Microsoft designs for people who have to do boring things with computers in order to make money. It's the 9–5 software vendor.
  • Previous big acquisitions: Nokia for $7.2bn, Skype for $8.5bn, Xamarin for $400m.
  • From 451 M&A coverage:
  • I-banker stuff: "Microsoft will pay $196 per share to acquire LinkedIn, a 50% bump up from where it was trading ahead of the deal announcement, although well behind the $250 each share was worth in November. The price tag values LinkedIn at 8.2x trailing revenue."
  • "The company [Microsoft] must find new ways to differentiate. Integrations with LinkedIn offer potential functionality that will be challenging to duplicate. When the two companies are joined, there will be multiple ways that LinkedIn's member network, and the data from that, will go into improving Microsoft's Office and Dynamics apps, besides the other benefits from running a combined company."
  • "LinkedIn's tools for recruiters account for 58% of the $860m in revenue it generated in the first quarter of the year [so, $3.440bn run rate]. When combined with educational material from its Lynda.com acquisition, HCM tools make up 65% of sales. Tools for marketers and premium subscriptions (including its offering for sales teams) each make up less than 20% of the business, and are the slowest growing parts of the business."
  • "Microsoft is the world's largest software developer, with about $100bn in sales and a $400bn market cap."
  • I-Bankers rejoice!
  • Tim Anderson inadvertantly makes a good case of CRM/HCM

Private Equity buying Tech Companies



BONUS LINKS! Not covered in show.

What enterprise wants from Google's cloud

  • Google, in short, needs to learn to be boring
  • ...according to Gartner analyst Lydia Leong: "Azure almost always loses tech evals to AWS hands-down, but guess what? They still win deals. Business isn't tech-only." What a weird thread that is!
  • "Greene is also tapping her VMware Rolodex, talking with big enterprise rivals like SAP SE, Microsoft and Oracle, to get more of their products into the Google cloud. That's must-have for some large companies, which need prepackaged software from these providers to run their businesses. No Oracle or SAP products are available on Google's cloud today. Microsoft and Oracle declined to comment, while SAP confirmed early talks." From Jack Clark's Bloomberg piece.

Docker, K8s and Mesos as Interoperability Targets

Meta Podcast Stuff

Apple Announcement