Microsoft shifts focus to social networking with $26.2bn deal

Washington. Microsoft shifted its focus to social networking with a massive $26.2 billion deal for professional social network LinkedIn.

With its biggest-ever acquisition and one of the largest in the tech sector, Microsoft is adding tools to connect with business as it moves further away from its roots as a pure software firm.

The acquisition aims to position the former tech sector as a Facebook-like entity oriented to business, with an array of services centred around cloud computing.

“This deal brings together the world’s leading professional cloud with the world’s leading professional network,” Microsoft chief executive Satya Nadella said in a statement.

Nadella added that LinkedIn “has grown a fantastic business and an impressive network of more than 433 million professionals.”

LinkedIn “will retain its distinct brand, culture and independence,” with Jeff Weiner remaining as LinkedIn CEO, the companies said.

The firms said they had reached a “definitive” agreement that would close later this year, with the support of LinkedIn chairman and controlling shareholder Reid Hoffman. LinkedIn, which enables members to connect with similar-minded professionals and facilitates recruiting and job hunting, has carved out a social network with a distinct identity. But the company reported a loss of $46 million in the past quarter and a $166 million loss for 2015, which put its shares at multiyear lows early this year.

LinkedIn, which calls itself “the world’s largest and most valuable professional network,” has been seeking to expand its offerings with more messaging and mobile applications, and revamped its “newsfeed” to help boost engagement. The deal reflects Microsoft’s new focus on business services and cloud computing, Nadella said in an email to staff.

The tieup “is key to our bold ambition to reinvent productivity and business processes,” he added. (AFP)

For more news get your copy of The Citizen read online through www.epaper.mcl.co.tz