Like Most Social Control Media, Microsoft LinkedIn is Collapsing
Yesterday I spoke to somebody about Microsoft LinkedIn and how it's constantly announcing layoffs and office shutdowns. LinkedIn was acquired by Microsoft because Microsoft had fallen behind in Social Control Media. But was it ever profitable? Well, probably not. It's hard to tell because they focus on revenue instead of net income.
There are some very large wave of layoffs coming Microsoft's way (a lot bigger than last month's) and we expect it to impact XBox and many other divisions. "Confirmed," one person said. "This one is going to be bad. Pretty much every department and team will lose headcount."
"Will LinkedIn be affected?" said this comment two hours ago. "CEO of LI now taking over Office, things getting more integrated, slash?"
Probably.
As we repeatedly showed this year, LinkedIn activity (or "engagement") is down and there are many layoffs.
Just like with GitHub, Microsoft bought something for hype's sake (about a decade ago) and now it must recognise that many of the operations lose money rather than make money as debt balloons. That's why Skype got a shot at the back of the neck. Remember Mixer? Or Danger?
The likely eventuality for LinkedIn is a lot of "downsizing" - to the point where the acquisition turns out to be a "write-off". One reason for Microsoft acquisitions is debt-loading, i.e. offloading and burying its debt. █
"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."