More recently, Microsoft acquired GitHub, a popular code repository, for $7.5 billion in Microsoft stock. In a smaller acquisition, the company added Glint, a human resources tool for employee satisfaction, for a reported $400 million. UpWork would make sense as another piece of the puzzle to fit alongside these other enterprise and business solutions for Microsoft.
Using LinkedIn as a Model
On June 13, 2016, Microsoft acquired LinkedIn in a cash purchase valued at a total of $26.2 billion, or, $196 per share. The acquisition price equated to a 50% premium to LinkedIn (LNKD) shares at the time.
It wasn’t just that Microsoft paid such a premium for LinkedIn, its that it did so at a time when the networking platform’s stock price was falling rapidly. At the beginning of 2015, LNKD had surged past $250 per share and was looking like a force to be reckoned with. However, by March of 2016, its price was dropping quickly, falling close to $100. It turns out, while revenues were growing, the company’s profits were falling, which scared off many investors.
