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“Got kitesurfing on the mind, mixed with some search & classification tech, and a dab of political ranting”

Facebook Should Buy LinkedIn

Posted by direwolff on October 16, 2007

After giving it some thought and discussing the respective uses for both services with a colleague, it was easy for us to conclude that it makes a ton of sense for Facebook to acquire LinkedIn.

LinkedIn’s data model is different than Facebook’s and while Facebook tries to address business needs, LinkedIn does a far better job maintaining an environment that is truly useful for business professionals. They also capture information that is much more relevant in the business context. As I mentioned in my previous post, it’s easy to find use cases where I would gladly welcome the linking of the information between the services. At the same time, the information I keep in both should remain separate and only be linked for providing some very specific services.

While I have yet to do the financial analysis here, given the valuation numbers being bandied around for Facebook, versus the comparables associated with LinkedIn, I’d say this acquisition should be fairly easy to accomplish at a price that sufficiently rewards LinkedIn on par with an IPO with added upside that could come from owning Facebook equity. Given Facebook’s upcoming ad network platform, the possibilities for Facebook seem far more endless than those of LinkedIn. As I see it, when LinkedIn opens up their platform APIs, we may see a whole slew of interesting business applications emerge from here, but the first thing I’d do is build the app that connects Facebook to LinkedIn and watch the swell of activity that results from this.

More on this as I ruminate further, but you heard it here first :)

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