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ACQUISITIONS ROUND-UP: ENTREPRENEURIAL TAKEAWAYS ON LINKEDIN, CENTURYLINK, YAHOO

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June 2016 is barely halfway done, and it’s been a crazy month for acquisitions.

Not the least of which, of course, is the $26.2 billion acquisition of LinkedIn by Microsoft.

Even if you’re a small start-up, knowing what’s going on in the upper echelons of business may give you something to shoot for in the long-run. Or at least, it’ll give you something to talk about when you’re networking with other entrepreneurs.

Here’s our acquisitions round-up for mid-June 2016:

Microsoft acquires LinkedIn

The $26.2 billion dollar price tag breaks down to about $196 per share, or $60 per user.

It’s uncertain what exactly Microsoft has planned for LinkedIn. The company’s CEO Satya Nadella describes the move in vague terms. “It’s really the coming together of the professional cloud and the professional network,” he said.

But it’s possible Microsoft only purchased the social platform for financial reasons – interest rates are low and LinkedIn’s stock is about the same as it was last year at this time. Still, many safely speculate that some sort of Office-suite integration may be in store.

Takeaways

  • Social media innovations are still hot targets for deep-pocketed tech giants.
  •  Acquisition success doesn’t come over night. It took LinkedIn 15 years on a bumpy road to get here.

Louisiana-based CenturyLink acquires Elastic Box

In local news, one of Louisiana’s two Fortune 500 companies – Monroe-headquartered CenturyLink – acquired a multi-cloud application management service Elastic Box.

CenturyLink has been on an acquisition streak since 2015, when it acquired Tier 3 and Orchestrate, both of which are cloud technology companies.

The company will use these acquisitions to grow its massive network, which includes a 250,000-route-mile U.S. fiber network and 55 data centers in North America, Europe and Asia. 

Takeaways

  • CenturyLink acquisitions bode well for Louisiana. Having a growing Fortune 500 company that continues to expand is an asset for the State.
  • Louisiana entrepreneurs working in IT and cloud-services industries should keep CenturyLink on their radars.  The company may have an interest in your success.

Yahoo Runs Out of Things to Acquire

Acquisitions don’t always have happy endings. And they don’t necessarily save stumbling companies.

Such is the case with Yahoo’s last 53 acquisitions. Despite a series of bold purchases, Yahoo recently laid off 15 percent of its workforce, and stalled its company-buying for now.

According to Gizmodo, the acquisition strategy has been around “MaVeNs,” or mobile, video, native advertising, and social media companies. So far, the strategy doesn’t appear to have panned out for Yahoo, but don’t count Marissa Meyer out yet.

 Takeaways

  • There’s an acquisition appetite for MaVeN-type companies that is not limited to Yahoo. Entrepreneurs seeking to get acquired may have an easier time if they fall into one of these categories.
  • On the flip side, a monumental failure by MaVeN-hungry Yahoo could lead to a devaluing of such companies.

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Stephen Loy