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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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