Signs that LinkedIn’s growth had started to slow had sent shares falling by more than 40pc since the start of the year, with investors fearing that a global economic slowdown could hit sales of its recruitment service. Microsoft said it was confident that the professional network still had a bright future, pointing to a rise in people using its smartphone app.
Microsoft is likely to incorporate LinkedIn profile data, which includes up-to-date information about people’s career histories and education, into its own corporate software, widely used by sales departments and recruiters. “We believe that Microsoft will be able to realise several strategic synergies,” said analysts at Credit Suisse.
News of the deal sent shares in Twitter – another social network that is widely seen as a prospective sale candidate – up 5.5pc. Google has been touted as a potential buyer.