"Where there is no vision, the people perish: but he that keepeth the law, happy is he."
-- Proverbs 29:18, King James Bible (KJV)

Tuesday, June 14, 2016

The Microsoft LinkedIn Acquisition and Adjusted-Ebitda Earnings Numbers Excluding Cost of Stock-Based Compensation as an Expense

This is an immediate follow-up on our previous posting on Microsoft's Deal to Acquire LinkedIn : Blessing or Bane?

Andrew Ross Sorkin at "Deal Book" at the News York Times examines One Unspoken Reason Behind the LinkedIn Sale relating to adjusted-Ebitda earnings numbers that exclude the cost of stock-based compensation as an expense for purposes of calculating earnings, a practice strongly criticized e.g. by investors such as Warren Buffet.