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This Is The Real Reason Microsoft Bought Linkedin

The document discusses Microsoft's acquisition of LinkedIn in 2016. It analyzes Microsoft's motivation for the $26 billion purchase, seeing LinkedIn not just as a social network but as a valuable content company that can be integrated with Microsoft products. The author argues LinkedIn produces valuable professional content for its large user base and has become an influential digital media platform.

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102 views3 pages

This Is The Real Reason Microsoft Bought Linkedin

The document discusses Microsoft's acquisition of LinkedIn in 2016. It analyzes Microsoft's motivation for the $26 billion purchase, seeing LinkedIn not just as a social network but as a valuable content company that can be integrated with Microsoft products. The author argues LinkedIn produces valuable professional content for its large user base and has become an influential digital media platform.

Uploaded by

hjbdkc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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8/17/2016

EBSCODiscoveryService@IIMAhmedabad

Record:1
Title: ThisIsTheRealReasonMicrosoftBoughtLinkedIn.
Authors: Feller,Grant
Source: Forbes.com.6/14/2016,p2222.1p.1ColorPhotograph.
DocumentType: Article
SubjectTerms: *CONSOLIDATION&mergerofcorporations
*PRODUCTmanagement
DIGITALmedia
Company/Entity: MICROSOFTCorp.DUNSNumber:081466849Ticker:MSFT
LINKEDINCorp.
NAICS/IndustryCodes: 519130InternetPublishingandBroadcastingandWebSearchPortals
Abstract: Thearticletalksaboutthe2016decisionofsoftwarecompanyMicrosoft
toacquirebusinessorientedsocialnetworkingserviceLinkedIn.Topics
includetheopportunityofferedbythedealforMicrosofttoembed
LinkedInwithitsenterpriseproductssuchasitsemailsystemSkype,and
thevalueLinkedInasoneoftheworld'smostinfluentialandspecialized
digitalmediacompanies.
FullTextWordCount: 985
AccessionNumber: 116157601
Database: BusinessSourceComplete

ThisIsTheRealReasonMicrosoftBoughtLinkedIn
MEDIA&ENTERTAINMENT
WithapologiestoBillClinton'selectoralguruJamesCarvell:it'sallaboutthecontent,stupid.That'swhy
Microsofthasjustmadeoneoftheboldestmovesinitshistorybyspendingmorethan$26billiononLinkedIn.
Inanageofhyperconnections,theacquisitionwhichvaluesLinkedInat$196ashareisasmartone.It
needstobeafteraseriesofhighprofilefailures,suchasMicrosoft'sdoomed$6billionacquisitionoftheNokia
mobilebusiness.
ThisnewdealmeansMicrosoftcanembedLinkedInwithSkype,itsemailsystemandotherMicrosoftenterprise
productssothat,inthewordsofoneSiliconValleyexpert,itwillbeable'torecreatetheconnectivetissuefor
enterprises.'
ButIthinkMicrosoftChiefExecutiveSatyaNadellahasboughtsomethingfarmorepreciousthanwhatsome
commentatorspatronizinglycallasocialnetworkforpeoplelookingforajob.Yesit'sagoldmineforrecruiters,
freelancersandthoselookingtoingratiatethemselveswithinfluentialexecutives.
Butthat'slikecallingGoogleasearchengine.LinkedInisacontentcompany.Ineffect,Microsofthasjustbought
oneoftheworld'smostinfluential,specialised,highlyread,constantlyupdated(and,itmustbesaid,occasionally
annoying)digitalmediacompaniesaround.And,unlikesomeonForbes,Idon'tthinkNadellahaswastedhis
money.
Reportedly,LinkedInhas433millionusers,morethanaquarterofwhomareintheUnitedStates.Twonew
membersjoineverysecondwhenLinkedInwasfoundedinCaliforniain2003,4,500membersjoinedafterits
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firstmonth.Thereare106millionmonthlyuniquevisitorstothewebsiteandinthefirstquarterof2016there
were45billionpageviewsonthesite,upfrom37billionthepreviousquarter.
Butit'snotjustthenumbersthatmatterandthisiswheresomejournalistshavegotitwrong.Muchofthevalue
ofthecompanyderivesfromthecontentthat'spublishedonthesite.Its2015revenuewas$2.9billion,which
wasa35%increaseonthepreviousyear.
SothismorningIswitchedontoreadafascinatingstatisticalanalysisbyoneofBritain'stopeconomists,Mark
Gregory,ofwhythetoptierofBritishsoccerisdestinedforaprolongedperiodofupsetsasthealsoranscatch
uponthepowerfulcliquethatusedtowineverything.Ilearnedfromoneofthemostseniorexecutivesat
pharmaceuticalgiantGSK,EricDube,howcorporateleaderscantransformtheirskillsbetweenAmerica,Japan
andtheUK.AndIwassentapiecefromHenryBlodget,theCEOofBusinessInsideraboutwhytheslumpin
wagesmeansit'stimefora'bettercapitalism.'
Yes,IwasalsotoldthatLucindahasanewjob,somebodyIoncemet'likes'agoofyvideoandalsothata
mysterious,unnamedfigurefromthemarketresearchindustryhasbeenlookingatmyprofile.ButI'msurethat
Nadella,likeme,knowsthatthosebitsareallfluff.Therealvalueofthesiteisasacontentpublishingplatformin
whichkeyexecutivescanexpandtheirnetworks,theirinfluence,theirfame,theirknowledge,theirpersonasand
theiropportunitiesforabetterpaidjobbyprovidingoriginalcontent.
Butsomedon'tgetit.Here'sonebusinessreportIreadthismorning,fromajournalistononeofourmost
prestigiousnewspapers,theDailyTelegraph.HeopinedthatwhilstLinkedInisa'factoflife'it'salsothe'dull
cousin'ofFacebook,'toleratedratherthanlovedandforgottenonceweleavetheoffice.'Nodoubtthefactthat
thewriterhasfewerthan500LinkedInconnectionsandhasneverhadtohustleforajobinhislifepointtohis
bemusementatthesite'spopularity.
Hisassessmentiswoefullyinaccurate.Likeallthebestdigitalmediacompanies,LinkedInhaspivotedsmartlyto
ensurethatitsoriginalraisond'etreajobseekingsocialnetworkingsitehasmorphedintosomethingfar
morepowerful,whichperhapsitsfoundershadn'tanticipated.ReidHoffman,bytheway,whohelpedtocreate
LinkedIn13yearsago,standstomake$2.8billionfromhis11%shareofthecompany.
Afterpornography,gamblingandshopping,contentisthemostvaluableserviceinternetcompaniesprovide.
WhatLinkedIndoesasopposedto,say,Facebookisthatitproducescontentthatpeopleactuallywantto
readand,whoknows,mayactuallywanttopayfor.Theykeywordis'produces'itdoesn'tjuststealand
redirect,thoughitdoesperformthoseactsadmirablyitallowsuserstocreatematerialthatintellectually
nourishes.
Admittedly,alotofthecontentispoor,someofitisblatantadvertorialandthereisacreeptowardsthebanalities
ofFacebook.SoonemosthopethatMicrosoftwillworkontryingtomaximisethebestmaterialandrefashionthe
layoutsothatitprovidesamoreintuitive,userfriendlyexperience.
WhichissomethingthatMicrosoftreallyoughttoknowhowtodo
GrantFellerisamediaconsultantandtheDirectorofGFMedia
PHOTO(COLOR):SANFRANCISCO,CAMARCH30:MicrosoftCEOSatyaNadelladeliversthekeynote
addressduringthe2016MicrosoftBuildDeveloperConferenceonMarch30,2016inSanFrancisco,California.
TheMicrosoftBuildDeveloperConferencerunsthroughApril1.(PhotobyJustinSullivan/GettyImages)
~~~~~~~~
ByGrantFeller,Contributor
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IwriteabouttheUKmedia,contentmarketingandpublicrelations.OpinionsexpressedbyForbesContributors
aretheirown.Ihavespentthepast20yearsasanationalnewspaperjournalistandeditor,launchedWebMDin
theUKandnowrunmyowneditorialconsultancy,specialisinginthoughtleadership,contentmarketing,blogging
andspeechwriting.IstilloperateasajournalistexceptnowItailormyskillstoindividualneedsandcorporate
storytelling.TheauthorisaForbescontributor.Theopinionsexpressedarethoseofthewriter.
CopyrightofForbes.comisthepropertyofForbesInc.anditscontentmaynotbecopiedoremailedtomultiple
sitesorpostedtoalistservwithoutthecopyrightholder'sexpresswrittenpermission.However,usersmayprint,
download,oremailarticlesforindividualuse.

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