Not much imagination is necessary. Microsoft had just announced it would pay $26.2 billion to buy the professional social network, making it the third-largest acquisition in the history of the tech industry. The deal was accompanied by substantial promises from Mr Weiner and Microsoft’s boss, Satya Nadella, that the deal would transform businesses’ and workers’ productivity worldwide. Those pledges seem fanciful.
Microsoft is paying a high price for a firm that has suffered its fair share of setbacks. Although LinkedIn is the largest professional social network by far, with around 430m registered users and 100m visitors to its site each month, some analysts have questioned how much bigger it can become. LinkedIn makes most of its money by selling subscriptions to corporate recruiters, who prowl through its database of executives looking for prospective employees. Revenue growth has been slower than expected, and rolling out new businesses and improving existing ones has proved pricey.
Concerns over the pace of progress came to the fore in February, when LinkedIn’s share price sank by more than 40% in a day, shedding $11 billion from its market value, after the firm reported that forecasts of revenues for 2016 were lower than expected. LinkedIn had also revealed that it made a net loss of around $165m in 2015, despite revenues of $3 billion, in large part because of excessive stock-based compensation. The decline was the biggest one-day fall since the company went public in 2011. Its share price has not fully recovered.
Despite these worries, Microsoft paid a generous 50% premium over LinkedIn’s share price to acquire the firm. Michael Cusumano at MIT’s Sloan School of Management reckons that the social network would have cost considerably less in a year’s time. Mr Nadella may have felt that he could not wait.
Unassailable during the desktop-computing era, Microsoft is still the world’s largest software-maker, but now has to compete with rivals such as Google and Amazon as computing shifts towards mobile devices and the cloud. Unlike his predecessor, Steve Ballmer, who was slow to invest in these areas, Mr Nadella has a grand scheme to reposition Microsoft. This involves putting less emphasis on Windows, the firm’s flagship operating system, as well as beefing up cloud computing and putting the firm at the forefront of advances in machine learning and artificial intelligence.
Acquiring LinkedIn is an element of this masterplan. The social-network firm has an enviable team of data scientists, a commodity coveted by tech firms. These boffins design algorithms to find patterns in big piles of digital information. LinkedIn will be useful to Microsoft for other reasons, too. The firm gathers detailed information about its users, including their employment history, education and whom they know. These data could prove valuable to Microsoft as it attempts to build offerings for managing relationships with customers and to compete with Salesforce, a firm it reportedly tried to buy last year.
The two firms could not agree on a price at the time. Salesforce’s current market value is around $55 billion. LinkedIn is a cheaper substitute. It will also dovetail with Microsoft’s existing products in Office, its collection of business applications and services that includes Word, Excel and Outlook, an e-mail system. The latter might gain in popularity if LinkedIn keeps users’ details up to date and offers alerts if a contact moves firms. Such extra features should, in theory, encourage companies to buy new cloud services from Microsoft.
Even so, the deal’s rationale looks questionable. Mr Nadella has suggested that with LinkedIn, Microsoft will become the platform for managing workers’ personal details from around the web. He also promises that Microsoft will become better at predicting what information users might find useful, suggesting news articles related to a project someone is working on or recommending a friend of a friend online who might be able to help an employee with a task at work. In this vision, LinkedIn’s “newsfeed” will become a focus for information-sharing at the office.
Is it worth it, let me work it. There are three hitches in Microsoft’s plans. The first is financial. It is shelling out the equivalent of around $260 for each monthly active user of LinkedIn. To keep shareholders happy, it will need to add users to LinkedIn’s platform more quickly or be clearer about how it can make more money from their data.
The second is operational. Microsoft’s record with big deals is poor. Its purchase of Skype in 2011 for $8.5 billion has been no runaway success. Microsoft squandered over $6.3 billion on aQuantive, an online-advertising firm that it bought in 2007, and $7.6 billion on Nokia’s handset business in 2014. Both misfortunes happened before Mr Nadella took over, but “the historic playbook says it’s not going to work,” reckons Brent Thill, an analyst at UBS, a bank. Mr Nadella intends to keep LinkedIn as an independent company, perhaps because he has seen the pitfalls of integrating large acquisitions at first hand.
The third hitch is behavioural. Mr Nadella wants LinkedIn to become the place to go for news and other details about people’s work lives, but firms are unlikely to want to give their employees more of an excuse to spend time on social media. Some bosses regard LinkedIn with hostility because it makes money from recruiters out to poach their staff. They will not want to let LinkedIn further embed itself at their companies. Already some large firms block or restrict access to LinkedIn on their networks. Users may also grow uncomfortable if Microsoft deploys their data elsewhere and could stop using the service. Mr Nadella has acknowledged they will have to treat what they know about users “tastefully”. The deal has been welcomed for other reasons, however. It could signal an impending tech buying spree. In the days after LinkedIn’s purchase, investors looked around to see which other firms Mr Nadella and his peers might have their eyes on. Optimists pushed up the share price of Twitter, another social-media firm whose growth prospects have been questioned, in the hope that a buyer might make a move. But not every tech firm is lucky enough to have Mr Nadella coveting it.
– The Economist
KEYSTONE STATE LOSES SPORTSCASTER Before his broadcasting career, Jim Miller plays professional baseball with Pete Rose and Willie Stargell. For a year he is a sports anchor at the CBS affiliate in Oklahoma City. For three years before joining WBRE in 1982 he is a sports anchor at the ABC affiliate in Columbus, OH. For nearly two decades, Jim Miller reports high school sports, professional sports and more on WBRE TV CH 28 Wilkes-Barre, PA. Sportscaster Jim Miller dies from cancer on Friday night, June 10, 2016.
IF YOU THINK THIS ISSUE OF JRRR IS WORTH READING…Please forward this entire issue to five of your friends and associates! To subscribe to Jim Rose Remembers Radio send your full Name, City, State and Country of residence plus email address to Rosekkkj@earthlink.net.
MICROSOFT BUYS LINKEDIN For several years, Internet social followers flock to Facebook. But when Facebook removes all email addresses and replaces them with Facebook links it cause many socialites to look elsewhere. Up pops LinkedIn with its popular graphics, plus better data in a compact form and it includes email addresses. LinkedIn quickly becomes the place to be. Not to be left standing on the corner, Microsoft acquires LinkedIn in a $26.2 billion cash deal. Jeff Weiner LinkedIn chief executive remains its CEO.
THE TICKET IS #1 IN DALLAS, TX Jeff Catlin, KTCK-1310 and KTCK FM (96.7) The Ticket Program Director, boasts the best ratings in its 22-year history as Sports broadcaster. In the May 2016 ratings, The Ticket’s weekday lineup each posts their best month ever in the all-important men 25-54 demographic. The April 21 to May 18 ratings contains lots of Texas Rangers, Dallas Cowboys draft talk. plus Stars playoff games. For the month of May 2016, The Ticket is #1 in men 25-54 with a 9.6 share of the ratings.
RADIO NEWS DIRECTORS ARE GETTING OLD The Telcom Law of 1996 radio consolidation places many radio people out of work. The Radio Television Digital News Association releases a new report that says radio and television News Directors are getting older. RTDNA’s survey of newsrooms indicates the average age of News Directors inches upward to 47.6. Radio news needs an influx of new talent before it ceases to exist.
TRIVIA QUESTION: When does radio legend Charlie Van Dyke do his last show on KHJ-930? The answer appears below.
MOVERS AND SHAKERS
•HAPPY BIRTHDAY! Scott Arthur June 14th. Joel Raab June 15, 2016. •MARK DAVIS established Dallas, TX talk host celebrates his fourth year in wake-ups on Salem Media Group News/Talk KSKY-660 The Answer.•ORLANDO, FL all Cox Media Group radio stations in the market news and radio personalities broadcast a two-hour live panel discussion on Monday, June 13, 2016 about the weekend massacre at Orlando’s Pulse night club.
ENTERTAINMENT AND NEWS MILESTONES
•1957 JIMMY DORSEY ORCHESTRA’s So Rare settles in at #2 on June 17th. •1964 CONNIE SMITH signs with RCA Records on June 24th. •1978 JIMMY BUFFETT’s Cheeseburger In Paradise rests at #32 on June 17th.•1989 GARTH BROOKS debuts on The Grand Ole Opry on June 24th. •1995 CLAIRE STERLING American author and journalist who writes about crime, political assassination and terrorism dies at 75 on June 17th.•2013 THOMAS RHETT’s video It Goes Like This debuts on CMT on June 17th.
EMAILS YES WE HAVE EMAIL
JENNIFER STEEL [Jenn Steel VO Talent/WNLK FM Greater Media] (Charlotte, NC) Subject: special emergency bulletin – Suzie. Jim — please set up at GOFUNDME page which would allow supporters to easily help you and Suzie. Paypal might offer a page too but GOFUNDME is easier I’ve heard. Do you have a friend who’s good with social media who could help set up?
WHERE DO YOU READ JRRR? Tell us how far away from Houston, TX that you read JRRR. Got a news tip or a question? Send your full Name, City, State and Country of residence to Rosekkkj@earthlink.net.
MIKE BUTTS [ex Oldies WNCL FM (COOL 101.3) Major Market Morning Radio Host, Animal Activist and Founder of MyFourLeggedKids.com] (Boston, MA) Subject: special emergency bulletin – Suzie. Been praying for you and sweet Suzie–here attached is another page of folks who help some people–you must understand the demand is high but it’s worth a try!! Bless your sweet girl Mike Butts [www.MyFourLeggedKids.com] / [www.facebook.com/MyFourLeggedKids]
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GARY DELAUNE [KYTY-810, KLIF-1190, CH 5 KENS TV] (San Antonio, TX) Subject: special emergency bulletin – Suzie. Jim; Let’s set up a GoFundMe page for Suzie. They take a small percentage of the donations but it is the best way to raise money in a quick way. It is a reputable web site. You have to give them a code etc. Last year, Bruce Hathaway and I kicked off a campaign for a former country music star who was desperately short of money. It raised over $10,000. Someone has to set it up and I don’t know how to do it but I’ll kick in $50 as soon as it is set up. I won’t have much cash until football season but perhaps we can get it going. Gary DeLaune (www.garydnews.com)
TRIVIA ANSWER: On June 5, 1977 DJ Charlie Van Dyke performs his last show on KHJ-930 Los Angeles, CA.
DANNY [Mack] MCWILLIAMS [GM KRNH FM Country (The Ranch 92.3)] (Kerrville, TX) Subject: Jim Gough. I guess it’s one of the sad signs of getting older, when friends start passing from this life. I am heartbroken to hear the news of my very good friend Jim Gough’s passing. Jim and I became very good friends when we both were working at KFRD-FM, in Rosenberg, in the early 80’s. Jimmy’s sense of humor and mine just cliqued. We both had a love for Western Swing and he introduced me to more legends than I can remember, in person, and through his weekly radio show “Rhythm Roundup.” His series on Texas history, “Today in Texas” was a well loved short-form radio program that kept our beloved Lone Star history alive. His most well known talent was, of course, that legendary voice. He used to bill himself, in jest, as the “Cheap Man’s Rex Allen.” Of course he was in so many movies and TV shows, but I still laugh when I think back to him calling me and asking me in his one of a kind voice; “Danny Mack have you seen that new movie The Newton Boys?” To which I replied that “I had not.” He said “well you need to see it, I got to shoot that snot nosed Matthew McConaughey.” As I recall Jim appeared in the film’s opening moments shooting from the running board of an automobile chasing Matthew across an open field. So many stories I could regale you with, but know that one of the greatest Ad Men of all time is now gone. Jim was accomplished in so many Commercial Art forms, including; Voice over, TV commercials (remember “The Good Guys in the White Hats?), Graphic art, Jingle writing and more. Though silenced now, that voice and friendship will live with me for the rest of my life. Jim, as you saddle up for your last journey, I thank you for the gift of knowing you. You will be missed partner. More than you know.
LORD BYRON (January 22, 1788 – April 19, 1824) Fare thee well! and if for ever, Still for ever, fare thee well.
Jim Rose and Suzie
Houston, Texas – Laus Deo
Carey Tapes a Promotional Video of Upcoming New Single, “In The Air” during CMA Fan Fest in Nashville
Back this past week for her third CMA Music Festival, California-based singer-songwriter Eileen Carey who basked in the applause of both new and long-established fans, returned home this week to find her current charting single “Bring on the big” reach the #1 on both New Music Weekly’s Country Main Chart; and on it’s Hot AC Chart as well. This is the second straight cut that has reached that #1 spot on both charts this year. In January, her “Faith,” release also topped both charts including the AirplayExpress Download chart for February 2016
Propelled by her hard-driving band, Carey rocked the crowds at Rippy’s on Broadway Friday and Saturday afternoon at the height of the Festival. She fuelled the rising excitement by tossing personalized T-shirts, cd’s and wrist bands out into the packed house. Each day of the Festival, she signed autographs at Honky Tonk Alley and held drawings for such prizes as wireless speakers, selfie sticks and gift bags filled with fun items.
Carey taped an acoustic video of her upcoming single, “In The Air,” for the popular CDX website, where radio programmers can download new music. The single, “In The Air,” which Carey co-wrote with Kathryn Grimm, Travis Allen, Odd Harold Jensen and Bjorn Charles Dreyer, will be released later this summer.
Rounding out her Music City pilgrimage on Saturday night Eileen attended the second annual “Country With A Heart” benefit for St. Jude Children’s Research Hospital held at Nashville Palace, and hosted by Nashville’s TV personality Jennifer Herron, and her husband, country music entertainer Bobby Marquez, where she ran into several of her fans as well as meeting & greeting with the artists on the line up.
The single, “In The Air,” which Carey co-wrote with Kathryn Grimm, Travis Allen, Odd Harold Jensen and Bjorn Charles Dreyer, will be released later this summer. Disc Jockeys and Radio Stations can also find some of Eileen’s biggest hits available on AirplayExpress for worldwide Airplay only.
About Eileen Carey: Eileen Carey is a California-based singer-songwriter-vocalist in the Pop-Country genre who has emerged over the last few years as both an accomplished storyteller and effective appealing stylist while making music that deftly combines country influences with pop arrangements. Her songs also offer distinct prominent messages about personal empowerment and emotional fulfillment.
“And let us consider how we may spur one another on toward love and good deeds, not giving up meeting together, as some are in the habit of doing but encouraging one another — and all the more as you see the Day approaching.” Hebrews 10:24-25
Mattie J.T. Stepanek, a poet and peacemaker, left behind many heartsongs before leaving this world just days before his fourteenth birthday. In his heartsong, or poem called “For Our World,” he encourages us to stop, be silent, and notice. It seems it is no surprise to turn on the news and find that another violent act has occurred. Another school shooting, another attack on a public event; another threat made; another group of people being persecuted. This world can take a toll on our faith. We often find ourselves asking, “How can this be happening?” Sin is real, and it is great in our world. It is easy for us to harbor hate and anger in our hearts; forgetting that God is the father of mercies and comfort. God gives us hope through His son Jesus Christ. And He blesses us with the body of believers to lean on.In Hebrews, we are told to come together and encourage one another to do good deeds and live a sanctified life. Mattie goes on to tell us, “In so many ways we are the same, and our differences are unique treasures.” The world is a dark place, “But thank God! He gives us victory over sin and death through our Lord. (1 Corinthians 15:57) As the body of believers, we need to stop, be silent, and notice. Never judging nor vengeful. And let us pray with, and encourage one another.
Prayer Gracious Father, please help us to stop, be silent, and notice what is going on in our world.
Help us seek peace together. Thank You for giving us the victory over sin through Your son Jesus Christ. Amen