Identity is Impossible to Value….Why Microsoft Bought LinkedIn and the Multiplier Effect is GOOD

I have read as much as I can about Linkedin and Microsoft merger. Everyone has a different opinion of course.

Most if not everyone is focused on the price tag, the valuation, whether Microsoft will ‘wreck’ it….

Nobody knows.

I was talking to Sean Creeley who founded Embedly over a beer today and he said that Microsoft needed the ‘identity’ part that LinkedIn has and I totally agreed.

It’s really impossible to value identity. It can be crushing to have your identity messed with. Facebook knows everything about you. Experian, Equifax and Transunion….oy. The retailers know more than they can handle or deserve. Microsoft is moving to the services business and so it makes sense to me that they finally struck hard at this asset.

As for the price tag…it’s all funny money.

Microsoft borrows the money because it’s free!!!! Why worry about repatriating and paying taxes. …they have dividends to pay and employees to keep.

The best part is that a new $26 billion in money is released into the system for Reid Hoffman and a new Linkedin mafia to invest and spend.

The only downside I see so far is no bankers lost a job to get this deal done.