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.”