What Does Microsoft Stand to Gain From its $26.2 Billion Acquisition of LinkedIn?

Microsoft announced today that it bought LinkedIn in a $26.2 billion deal, the tech giant’s largest acquisition in its 41-year history by a wide margin. So what value does Microsoft see in the professional social networking site?

Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research, says he believes LinkedIn’s 49 percent increase in mobile users over the last year was very appealing to Microsoft. “The intent here is to drive more mobile ad revenue and build more platforms, which will use the capabilities of [products such as] Office 365 and extend these marketing solutions that already are there with LinkedIn.”

Looking ahead, Gogia believes that while the move puts Microsoft in league with Google and Facebook, the Windows maker is going to have to perhaps make another deal to cement its place in the mobile arena. “Google and Facebook have invested tremendously in mobile ad networks, whereas Microsoft has absolutely nobody, so I would assume next that they would go out and acquire a company to be able to make up for that.”

Source: Entrepreneur.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s