Motivations for Microsoft LinkedIn Purchase
April 13, 2017
We thought the purchase was related to Microsoft’s in-context, real-time search within an Office application. However, according to BackChannel’s article, “Now We Know Why Microsoft Bought LinkedIn,” it’s all about boosting the company’s reputation. Writer Jessi Hempel takes us back to 2014, when CEO Satya Nadella was elevated to his current position. She reminds of the fiscal trouble Microsoft was having at the time, then continues:
It also had a lousy reputation, particularly in Silicon Valley, where camaraderie and collaboration are hallmarks of tech’s evolution and every major player enjoys frenemy status with its adversaries. Microsoft wasn’t a company that partnered with outsiders. It scorned the open-source community and looked down its nose at tech upstarts. In a public conversation with Marc Andreessen in October 2014, investor Peter Thiel called Microsoft a bet ‘against technological innovation.’
The write-up goes on to detail ways Nadella has turned the company around financially. According to Hempel, the LinkedIn purchase, and the installation of its founder Reid Hoffman on the board, are in an effort to boost Microsoft’s reputation. Hembel observes:
As a board member, Hoffman will be Microsoft’s ambassador in the Valley. Among a core group of constituents for whom Microsoft may not factor into conversation, Hoffman will work to raise its profile. The trickle-down effect has the potential to be tremendous as Microsoft competes for partners and talent.
See the article for more information on the relationship between the Nietzsche-quoting Nadella and the charismatic tech genius Hoffman, as well as changes Microsoft has been making to boost both its reputation and its bottom line.
Cynthia Murrell, April 13, 2017
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