Microsoft’s (tkr: MSFT), LinkedIn business unit specializes in entity data and related content similar to ZoomInfo (tkr: ZI). Given ZoomInfo’s inflated valuation, Microsoft would likely unlock significant shareholder value were it to spin-off LinkedIn as a separately-traded business.

A 20x multiple (par for the course in today’s richly-valued Software market and a haircut to ZI’s 45x EV/ CY’20 Revenue multiple), applied to LinkedIn’s Calendar 2020 Revenue implies an Enterprise Value of approximately $180 billion. This valuation is well ahead of Microsoft’s 2016 LinkedIn purchase consideration of $26 billion.

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