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Why did Microsoft buy Linkedin for $26 billion?

  • TommyCarey Level X3
    • 7

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    Why did Microsoft buy Linkedin for $26 billion?

    I was recently reading an article about how Microsoft bought LinkedIn not too long ago.

    What do you think the reasoning is behind Microsoft paying $26 billion for LinkedIn was?


    I personally think that when Microsoft purchased LinkedIn it was a power move to take over a larger section of the internet. They have one of the biggest companies in the world and the main things they have going for them are the Bing search engine and Skype, which are both massive in their own right. Bing came out of no where and already takes like 10% of the market share for searches and Skype has no competitors in it's niche since it's cutting edge and constantly updated.

    Google has Google Plus, Facebook has it's pages, and Microsoft now has LinkedIn which I think is better than both G+ and Facebook pages. Not only can Microsoft push people to purchase their own products, but they can get them to also sign up for Skype which will increase the price per share and they can also get Bing ads placed on LinkedIn in order to increase the amount of clicks it's advertisers will get. I'm not sure how long it will take to get back the $26 billion, but maybe they thought they were buying it knowing they were going to be in the black for along time.

    What do you all think?
    Was it a smart move by Microsoft?
    Do you think Microsoft will add Bing Ads to LinkedIn?

    Any info no this is welcome Why did Microsoft buy Linkedin for $26 billion?

    #Microsoft #Linkedin Technology & Internet
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    Cristian

    Cristian

    Smart move from Microsoft. And they definitely have the money for such a move!
    LinkedIn is a great platform, I use it more and more every day. It's perfect for professionals looking to do and talk business.Nobody wants to talk business on Facebook and for the future I can even see people not having a Facebook account and just having LinkedIn.

    In fact, I plan to do this myself. Why even use Facebook anymore? I'm pretty sick of all the constant pictures, shares and check-ins - almost nobody reads. I also stopped using the Facebook Messenger as main chat app, I'm using Whatsapp now.

    So yeah, if older people are using Skype and Whatsapp to communicate and LinkedIn as a social network to stay in touch with everything that's happening in their niche plus everything Google (for search and email mostly) what does Facebook ends up with in the long run?
    8 years ago

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    Webguy2024

    Webguy2024

    Don't be shocked at the big price tag. I think this deal is a bargain at $26.2B because Microsoft stands to earn earn trillions of dollars on an annual basis.
    Microsoft main goal is to use the LinkedIn database as a global contact list to sell products and services on a global scale. Microsoft will now have access to a massive list of business professionals and decision makers in every niche. This "big data" info is a massive new distribution channel where they will sell their software systems and services. Also in the works from what I have read is that both LinkedIn and Microsoft are working on some new services for sales, marketing, human resources and more. These services seem to be centered around Microsoft Office 365 and Dynamics. Microsoft is touting that "A sales rep could look up someone he's pitching to through Outlook and see their LinkedIn information while writing an email pitch. Microsoft will now also have access to the global work force data. Human resource departments will be able to integrate a LinkedIn work history to determine salaries and placements. I also read that Microsoft may want to acquire salesforce.com as a cloud play.
    8 years ago

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    Lynne

    Lynne

    Oh wow $26 billion is a nice bucket of cash isn't it?

    I guess maybe the Premium accounts are racking up nicely and that will bring in a nice return at some stage.

    I just wonder how LinkedIn is growing in comparison to Facebook and the other big social networks. I do agree to some extent that LinkedIn truly is a lot more professional so for a business it is essential to have a LinkedIn page. I also feel everyone should have a professional LinkedIn profile. You certainly are much less likely to come across people having an online spat on LinkedIn, whereas Facebook and Twitter seem to be quite notorious for trashing other people online.
    8 years ago

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    danigo

    danigo

    That is a quite big amount, i do not know the news even,
    How can it be?
    Actually this technology company are bargaining for higher prices right?
    Do you agree too?
    8 years ago

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    Corzhens

    Corzhens

    That amount is gargantuan in my books and it’s because LindkedIn has something in it. Microsoft has the money and the name of the game is gobbling up. Google bought Blogspot and then Youtube. Microsoft may be having the same idea of eating the small ones to make yourself bigger. Perhaps Microsoft wants to utilize the people in the network of LinkedIn for their campaign with Bing. That’s the comfort when you have the money to spend, you can buy just any company at a whim.
    6 years ago

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