Microsoft's purchase of LinkedIn may prove to be troublesome for the business-oriented networking platform. (Photo : Getty Images)
Microsoft’s acquisition of LinkedIn may bring complications to the latter’s expansion in China, considering what happened with Alphabet Inc.’s Google pullout from the country due to censorship in 2010.
Win Beta, a website dedicated to news and updates about Microsoft, said that many are finally taking a closer look at the Microsoft-LinkedIn merger after a few days from its announcement.
While it may not have any issues with regard to the rest of the world, the tandem may face difficulty particularly on the part of LinkedIn in China thanks to the Chinese government's "Great Firewall."
The Acquisition
On June 13, Microsoft revealed its plans to buy the business-oriented social networking service LinkedIn for $26.2 billion.
According to the Xinhua News Agency as posted on China.org, the plan was to bring growth to both companies as Microsoft gains access to LinkedIn's connections to improve its business productivity tools.
"We are in pursuit of a common mission centered on empowering people and organizations," said Satya Nadella, Microsoft's Chief Executive Officer. "Along with the new growth in our Office 365 commercial and Dynamics businesses, this deal is key to our bold ambition to reinvent productivity and business processes."
Furthermore, Nadella emphasized the crucial role of LinkedIn's social networking service for professionals and businessmen, saying that if and once people succeed in what they are looking for they would need "a connected professional world."
The Complication
While analysts remained silent for more than a week after the announcement, many of them are now seeing the possible difficulties for such venture particularly in China.
The Wall Street Journal contributor Alyssa Abkowitz particularly noted that doing business in China may prove difficult for Microsoft even if they team up with LinkedIn considering what happened with Google in 2010.
In fact, Microsoft is facing a three-year anti-trust probe, which Nadella would reportedly discuss with Chinese officials during his visit to the country, per Reuters.
Plus, LinkedIn's supposed expansion in the country will also be affected even if the company agreed to follow the nation's stern rules on censorship.
As it turns out, the only way Microsoft would be able to remove such complications is to agree to be subjected to more scrutiny and abide by rules and regulations set forth by the ever-so-strict Communist Party of China.
Meanwhile, a LinkedIn spokesperson told the WSJ that while it may be already owned by Microsoft soon, it would still operate separately from the tech company and "retain its distinct brand, culture and independence" everywhere, including China.
