Why has Microsoft paid US$26 billion for business networking platform LinkedIn?

By Mark Skilton

The Microsoft move to acquire LinkedIn is a better move than past buyouts, the infamous failure of the Microsoft purchase of Nokia mobile phone business in 2013 at $7.2 Billion is a fraction of the $26 Billion for LinkedIn. But this is a different move and a different marketplace, providing a stronger enterprise social platform to integrate Microsoft cloud and office productivity. It also gives LinkedIn a better roadmap in the long run.


Time ran out for LinkedIn

To some extent time had ran out for LinkedIn as it had been underperforming in the market in the eyes of stock analysts, certainly in the last 12 months and since the 2011 floatation on the stock exchange. LinkedIn in the last few years has actually started losing active customers and its share price has dramatically fallen – by over 40% in recent quarters. LinkedIn, with its user base of 106 million active users by 2016 compared – to Twitter’s 310 million active users and Facebook’s mighty 1.65 billion active monthly users – had never managed to increase its commercial services in what could have been a strong enterprise market.

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