![]() On top of that, the trades from last Friday were not the only questionable action in LinkedIn’s shares. But even if you factor in the $500,000 loss from the put position, the trader who bought the $160 calls still made a heck of a lot of money, roughly $1.4 million. ![]() The options are now essentially worthless, trading at $0.10 per contract on Monday, for a total of $6,670. For instance, 667 put contracts were bought on Friday at a strike price of $125, meaning the trade would make money if LinkedIn’s stock price fell below $125. However, even if the put was meant to hedge the call option, it appears whoever put on these trades stood to make more money if LinkedIn’s shares took off, perhaps because of an acquisition, which is what happened. Back in 2011, for example, unusual options trading preceded Hewlett-Packard’s purchase of 3Com, ultimately leading to insider trading charges against a hedge fund manager. If this is indeed a case of insider trading, it would hardly be the first time that options trading was the first giveaway. A more likely scenario, of course, is that someone in the market had an inkling of what was coming. Another red flag: All of the $175 call options were bought in the last five minutes of trading on Friday. They are now worth $569,100, a gain of 2176% in less than one trading day. Those same options are now worth just over $2 million, for a less than one trading day profit of nearly $1.9 million.Īlso on Friday, 300 options to buy LinkedIn shares at $175 were bought in four trades. Just how lucky? According to data from Bloomberg, 600 options to buy LinkedIn shares at $160 were bought in two trades on Friday afternoon for a total of $135,100. Jeff Weiner will continue to be the CEO of the platform, although he’ll report to Satya Nadela while joining the senior leadership team.It is, of course, possible that last Friday’s buyer (or buyers?) simply had remarkably fortunate timing. Structurally, LinkedIn will remain independent. In fact, when Reid Hoffman, the founder of LinkedIn, and I spoke about the opportunity for us to come together, he called it a ‘re-founding’ moment for LinkedIn and an opportunity to reach the mission the company set out on 13 years ago”. ![]() ![]() In an e-mail that Microsoft CEO send to the company’s employees, we can find a bit about the LinkedIn’s growth: “we have a significant opportunity to accelerate LinkedIn’s growth and the value it brings to its members with Microsoft’s assets and scale. Quick sidenote: we don't want you to pay a 50% premium over Brand24 subscriptions. Microsoft will pay “$196 per share in cash, representing a 50% premium over LinkedIn’s last closing price“. It Doesn’t Anymoreīack in February, the value of LinkedIn’s shares was slashed, so the deal certainly seems good for them. In the future, it will assist you in a much more complex way, providing you with an intel on your business relationships. It can tell you some basic information about your calendar, missed calls, e-mails. Right now, Cortana works similar to Siri. Mark Hachman at PCWorld says that Microsoft spent the money to ensure that “you’ll never walk into a meeting unprepared”. There are even ideas regarding Cortana, Siri-like voice assistant, which could provide context to the people you meet professionally. As noted by The Verge, Microsoft wants to turn LinkedIn profiles into a central identity. Cortana and LinkedIn Integration Might Be HugeĪnd that is only the beginning since LinkedIn is to become a central professional profile that will be available within Outlook, Skype, Office, and Windows. Aside from that, social media can be a large source of new leads. And in turn, new opportunities will be created for monetization through individual and organization subscriptions and targeted advertising”. “As these experiences get more intelligent and delightful, the LinkedIn and Office 365 engagement will grow. “This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you’re trying to complete”, said Satya Nadella, Microsoft’s CEO. Nowadays, Office is 1,2 billion people strong. Having that big user base, the company from Redmond will be able to closely match its own users with its software and services. And Microsoft, no matter how big it is, didn’t have a social network until now. Well, anything with 433 million members and 2 million paid subscribers is attractive.
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