Strategic Rationale Behind Microsoft's 2016 LinkedIn Acquisition
Company: Microsoft
Role: Product Manager
Category: Product Design & Strategy
Difficulty: medium
Interview Round: Other
Why do you think Microsoft acquired LinkedIn? Explain the strategic logic from Microsoft's side.
```hint Start from the buyer
Before listing what LinkedIn is good at, describe what Microsoft was trying to become at the time of the deal and which gap it could not close quickly on its own.
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### Clarifying Questions
- Should I reason about the deal as it looked when it was announced, or also judge how it has worked out since?
- Is the interviewer after the product and data synergies, the financial case for the price, or both?
- Should I cover what LinkedIn gained from the deal, or keep the answer to Microsoft's motives?
### What a Strong Answer Covers
- Microsoft's strategy and gaps at the time, and how LinkedIn's network, data and revenue lines filled them
- Concrete synergies across Office, Dynamics, advertising and learning, ranked rather than listed
- Why buying beat building or partnering, including the competitive and defensive angle and the price paid
- The choice between integrating LinkedIn tightly and keeping it independent and neutral
- The metrics and risks that decide whether the acquisition paid off
### Follow-up Questions
- Was the price Microsoft paid justified, and how would you sanity-check it?
- Would you run LinkedIn as an independent unit or fold it into Microsoft's product groups, and why?
- Which LinkedIn integration would you build first inside Microsoft's productivity apps, and how would you measure it?
Overview: A product strategy interview question asking a product manager to explain why Microsoft acquired LinkedIn. It tests whether a candidate can tie an acquisition to the buyer's strategy and gaps, weigh buying against building or partnering, judge the price and integration approach, and name measures of success.