Microsoft overpaid to acquire LinkedIn. LinkedIn's growth has been slowing for several years. This is reflected in its stock price falling by about half over the last year. Despite this, Microsoft paid a 50% premium to the prior day's closing price. Microsft will have to extract a lot of saving and revenue from the deal, but these are uncertain.
Microsoft will earn it back to be sure, they have a diamond in the rough with LinkedIn. That is a very useful site and there is no way they can lose money on such a prospect as the one they bought. I use it all the time and I hate social media
Microsoft could certainly afford whatever they paid for Linkedin. Which by the way is a sound investment for the software company. Linkedin has become a well known social media type platform for business and those searching for work. To me no matter how much the amount it was worth it to Microsoft, they see that the future is online and they definitely want to be a huge driving force in the technology age.
Whether or not Microsoft pay too much money for LinkedIn can only be decided over the course of time. Then, and only then, will we know whether such a significant investment pays off or not. On paper, and theoretically, it looks like a great deal. Microsoft is full of smart people and would not make such a purchase without grounds for it.