Revenue from this business has tripled since Microsoft acquired LinkedIn for $ 26.2 billion in 2016. Nadella told investors in July that LinkedIn’s revenue exceeded $ 10 billion, up 27% year-on-year.
LinkedIn refused to comment beyond the announcement.
Microsoft has been trying to build a market in China for over a decade, but with little success. Last year, Microsoft president Brad Smith said the country accounted for less than 2 percent of revenue.
Microsoft Windows and Office are common in China, but many people use pirated versions. The company seeks to overcome this problem by hosting the software online and leveraging China’s leading military contractors to provide a reliable operating system from the Chinese government.
This year was a difficult year for Chinese private tech companies. Xi has overseen a series of investigations, bans, and new rules that have lowered many of the most well-known local Internet companies, including Alibaba and Didi.
The scale and scope of Beijing’s crackdown has been so staggering that not only Chinese companies, but even US companies, have had to withdraw, said Dan Ives, an analyst at Wedbush Securities. rice field. The last thing Microsoft wanted was to get into China’s political football situation.
Thursday’s announcement was a sign of news sensitivity, not by Nadella or LinkedIn CEO Ryan Roslansky, but by social network engineering director Mohakshlov.
The closure of LinkedIn raises questions about the outlook for search engine Bing, while leaving Microsoft out of one business. Bing, the only major American search engine still running in China, is also censoring the results. In 2019, controversial topics like the Dalai Lama were temporarily blocked domestically, despite continuing to push users to state media accounts.
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