LinkedIn: A good time to sell

Professor Michael A. Cusumano from MIT Sloan School of Management said it’s a good time for LinkedIn shareholders to sell up and exit. “They lost money last year. They've found it's very expensive to keep growing. They're probably as valuable as they will ever be." It’s not just the sellers who are happy, the deal appears to be positive for Microsoft shareholders also. Andrew Macken, portfolio manager for the Montaka Global Fund, said they think the tie-up is strategically logical. “Microsoft is seeking to ingrain itself deeper within the enterprise; while LinkedIn is the largest and smartest recruiting database in the world. It certainly seems reasonable to believe that the LinkedIn asset will become more valuable under the ownership of Microsoft than as a stand-alone business. People forget that Microsoft is a US$335 billion company with around US$60 billion in net cash on the balance sheet. Buying LinkedIn will hardly break the bank.”