Technology

Salesforce considered making bid for LinkedIn

Firm’s chief hired Goldman Sachs to have ‘solid look’ at company before Microsoft deal

epa05361795 The logo of Microsoft windows and Professional social networking service LinkedIn is pictured in Taipei, Taiwan, 13 June 2016. According to reports, Microsoft is going to buy LinkedIn for 26.2 billion US dollars in cash. EPA/RITCHIE B. TONGO

Sat Jun 18 2016 - 01:00

Salesforce. com considered making a takeover bid for LinkedIn before Microsoft won the professional social networking company over with its own $26 billion offer.

The competition for LinkedIn helps to explain why Microsoft agreed to pay a premium of nearly $9 billion for the company despite LinkedIn’s recent struggles.

It also highlights the intensifying rivalry among a handful of giant software companies that are vying for leadership in the fast-growing cloud computing market.

Marc Benioff, Salesforce's chief executive, said he had hired Goldman Sachs to advise on a possible bid for LinkedIn and had given the company "a solid look".

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Compared with Microsoft’s net cash and investments of $70bn, Salesforce only has net cash of about $2bn and a stock market value of $55bn, leaving it in a weak position to compete with Microsoft’s large, all-cash offer.

Mr Benioff’s comments, made in an interview with online news site Recode, were confirmed by the company.

– Copyright The Financial Times Limited 2016

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