LinkedIn loses $100 million since acquisition by Microsoft

LinkedIn loses $100 million since acquisition by Microsoft

As Microsoft ($MSFT) reported its second quarter earnings on Thursday, the company shared that its newly acquired subsidiary LinkedIn contributed $228 million in revenue towards its bottom line, but also lost $100 million in net income.

Microsoft said it generated a total of $26.1 billion in revenue for the quarter, so LinkedIn’s share is less than 1 per cent. In the bigger picture, the $228 million should not be assessed as either good or bad since it hasn’t been a part of Microsoft for a full quarter as the deal to acquire the professional social networking company only closed recently.

To know more, though, in Q2 2016, LinkedIn reported it generated $933 million in revenue, with earnings per share of $1.13. It also had a net loss of $118 million.

In Microsoft’s filing, LinkedIn was relegated to the productivity and business processes section, which in total brought in $7.4 billion for the quarter, a 10 per cent annual increase. And since it’s now a subsidiary, LinkedIn is no longer listing its member numbers. In its final quarter as an independent entity, it said membership grew 18 per cent to 467 million.

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