LinkedIn is still losing money to the tune of $100 million even after Microsoft acquisition
The professional social networking platform LinkedIn continues to bleed revenue, according to Microsoft quarterly earnings reports released yesterday. Before the tech giant’s acquisition, LinkedIn had reported nearly a $118 million net income loss in Q2 2016. Even with Microsoft’s acquisition, the report shows a loss of $100 million (via The Verge.)
However, we can’t judge the numbers quite yet. The release of the Q2 2017 report is right on the heels of the LinkedIn purchase last month. Even though the official announcement was in June 2016, it wasn’t until December that the company finally closed the deal upon the EU Commission’s approval.
It’s fair to say that even though LinkedIn was a logical purchase, LinkedIn is proving to be a difficult integration if only for its loss. Even with the $228 million contribution, it was just a 1% speck towards Microsoft’s total $26.1 billion revenue reported.
LinkedIn will get its chance to prove itself in the next quarter and beyond. Satya Nadella has ambitious plans to build up the global workforce with the network’s capabilities and build onto it. It will be interesting to see how these integrations affect LinkedIn’s revnue in the reports still to come in the next half of the fiscal year.Further reading: FY2017 Q2, LinkedIn, Microsoft