LinkedIn to End Service in China, Citing ‘Challenging’ Environment


Since Microsoft bought LinkedIn for $26.2 billion in 2016, revenue from the business has tripled. Mr. Nadella told investors in July that LinkedIn’s revenue had surpassed $10 billion in annual sales, up 27 percent from the previous year.

LinkedIn declined to comment beyond its announcement.

While Microsoft has tried to build a market in China for more than a decade, it has had only modest success. Last year, Brad Smith, Microsoft’s president, said the country accounted for less than 2 percent of its revenue.

Microsoft Windows and Office are common in China, but many people use pirated copies. The company has tried to overcome the issue, by hosting its software online and by tapping a major Chinese military contractor to help it offer an operating system better trusted by China’s government.

It has been a difficult year for private technology firms in China. Mr. Xi has overseen a series of investigations, bans and new rules that have laid low many of the country’s best known local internet companies, including Alibaba and Didi.

“The scale and scope of the crackdown in Beijing has been so jaw-dropping that not just domestic companies within China but even U.S. companies have now had to pull back,” said Dan Ives, an analyst at Wedbush Securities. “The last thing Microsoft wanted was to get into a political football situation in China.”

In a sign of the sensitivity around the news, Thursday’s announcement was not made by Mr. Nadella or LinkedIn’s chief executive, Ryan Roslansky, but by Mohak Shroff, the social network’s head of engineering.

Yet while the LinkedIn closure gets Microsoft out of one fraught business, it raises questions about the prospects of its search engine, Bing. The lone major American search engine still operating in China, Bing also censors results. In 2019, it was briefly blocked in the country, even as it continued to push users there to state media accounts on disputed topics like the Dalai Lama.



Source link

More from author

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related posts

Advertismentspot_img

Latest posts

Gotham Knights Re-Emerges At DC Fandome With A New Trailer

Coming out of the shadows once again is Gotham Knights, a co-op action RPG that puts players in the shoes of various members...

Casey Martin has right leg amputated due to rare circulatory disease

NEW YORK -- Casey Martin, the Oregon golf coach who successfully sued the PGA Tour for the right to use a cart because...

Does the NFT craze actually matter? – TechCrunch

Hello friends, and welcome back to Week in Review! Last week, we talked about Apple’s subscription addiction. This week, I’m diving deep into whether...

Want to stay up to date with the latest news?

We would love to hear from you! Please fill in your details and we will stay in touch. It's that simple!