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LinkedIn wants to use games and AI to keep you on the site

LinkedIn is a strange mosaic of features, but it makes a lot of money

7/22/24 9:34AM

Gamification

LinkedIn, the Microsoft-owned platform where people go to network, look for new jobs, or post nonsense dressed as enterprise sales wisdom, has added mini games and artificial intelligence features to help visiting become a “daily habit” for users, the site’s editor-in-chief told the FT.

The first games dropped in May, with some LinkedInners surprised by how fun the puzzles are, as the platform shifts further from its work-oriented origins. While its artificial intelligence features are likely a little less entertaining (employers can enlist AI assistants to “simplify the recruitment process” or “optimize job posts”) LinkedIn execs are hoping that the tech will see more of their ~1 billion members become power users.

B2Bs, humblebrags, and billions

After launching in 2003 and going public in 2011, LinkedIn has become a necessary platform for employees and employers around the world. In 2016, Microsoft splurged more than $26 billion to buy the company, making it the tech giant’s most expensive acquisition at the time. It’s hard to predict the future, but articles like “4 Reasons Microsoft Wasted $26.2 Billion To Buy LinkedIn” reflected a common school of thought at the time, with many questioning the platform’s financial potential.

The mosaic that LinkedIn has become — a corporate social network, a job platform, a newsfeed, and now a games hub — might seem slightly strange, but the financial results are hard to argue with.

LinkedIn revenue
Sherwood News

Indeed, last year LinkedIn contributed more than $15 billion in revenue, over 6x what it managed in its first year under the MSFT umbrella. Its premium subscription offering accounted for $1.7 billion of that, while another $7 billion came from hiring software that LinkedIn sells to recruiters.

While adding mini games and AI features might sound like the sort of efforts that Snapchat or Netflix would roll out, the additions reflect LinkedIn’s ambitions to go beyond the boring “congratulations on your new role” type of posts that often dominate users’ feeds.

Authors of this article own shares in Microsoft.

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Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

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WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming & studios, the other for its traditional cable/TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming & studios, the other for its traditional cable/TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

business

Fox and News Corp slide as investors digest $3.3 billion Murdoch succession settlement

Fox and News Corp shares dropped on Tuesday after Rupert Murdoch’s heirs agreed to a $3.3 billion settlement to resolve a long-running succession drama.

Under the deal, Prudence, Elisabeth, and James Murdoch will each receive about $1.1 billion, paid for in part by Fox selling 16.9 million Class B voting shares and News Corp selling 14.2 million shares. The stock sales will raise roughly $1.37 billion on behalf of the three heirs.

The new trust for Lachlan Murdoch will now control about 36.2% of Fox’s Class B shares and roughly 33.1% of News Corp’s stock, granting him uncontested voting authority over both companies for the next 25 years. Originally, the Murdoch trust was designed to hand over voting control of Fox and News Corp to Prudence, Elisabeth, Lachlan, and James after his death.

Investors are weighing the trade-off. Clear leadership under Lachlan may resolve conflict internally, but the share dilution, executed at a roughly 4.5% discount, means long-term investors now hold slightly less clout than before.

Both companies’ stocks were trading close to all-time highs prior to the announcement.

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