Have I got a deal for Silicon Valley
When Google paid $3.2 billion for a company that made thermostats, I thought, "Wow, that's a lot of money."
But when Microsoft paid more than $25 billion this week for LInkedIn, I thought, "Wow, I should sell something to a Silicon Valley super power."
And so, I am officially putting on the market my Ken-O-Matic Magnetic Pro business facilitator. I am willing to sell all rights throughout the universe to this game-changer.
We will return to that line of thought in a moment. First, let’s look at the Linkedin deal.
Based on acquisition prices from the two biggest 2015 blockbuster transactions in the LBM industry, Microsoft could have bought Stock Building Supply, and ProBuild Holdings -- and then had roughly $23 billion left over.
The business press generally applauded the LinkedIn acquisition as wise, bold and forward-thinking. And Microsoft deserves credit for seizing a valuable domain, as Caesar himself seized Gaul. But the fortunes of these tech ventures are difficult to predict.
Remember MySpace? In 2005 News Corp. paid $580 million for MySpace. It sold MySpace to Specific Media in June 2011 for $35 million.
What is LinkedIn that it fetched $26 billion? For those who don't follow our HBSDealer LInkedin page, or participate in our industry-specific LinkedIn discussion groups -- LBM dealers and Hardware Dealers -- here's a word of introduction: LinkedIn is a popular web site that allows sharing of ideas and networking among professionals across industries. It's more business-oriented than Facebook, and more substantial than Twitter.
It can be used in any number of ways. For instance, thought leaders can share articles about the importance of thought leadership. And LinkedIn sellers can endear themselves to LinkedIn buyers by writing comments such as: "Couldn't agree with your more," or "Your thoughts on this matter are beyond reproach.”
Oh, by the way, Linkedin’s net loss was $166 million in fiscal 2015.
But enough about LinkedIn. What's the next big thing?
During the course of my duties as editor of HBSDealer, I have invented a magnetic organizational system called the Ken-O-Matic Magnetic Pro. I describe it as a "disruptive form of communication" that allows business people to organize information, manage page layouts and generally improve their productivity. The "system" integrates little pieces of cardboard that are attached to a metal sheet. The user writes on the little pieces of cardboard, and moves them around various grids, as fluid business conditions demand.
In the spirit of full disclosure, Ken-O-Matic broke even in 2015. Let’s start the bidding at a measly $2.5 million. You know how to reach me.
Here is a picture of the system at work: