Why Microsoft, LinkedIn Merging A Potential Problem in China
Charissa Echavez | | Jun 24, 2016 05:41 AM EDT |
(Photo : Getty Images) In this photo illustration, the LinkedIn logo is displayed on the screen of a laptop computer on January 27, 2011 in San Anselmo, California.
Microsoft's plan to acquire business-oriented social networking service LinkedIn seems to face a problem in China because of the censorship law in the country.
Alyssa Abkowitz of the Wall Street Journal suggested that the merger may be complicated, because of the so-called Great Firewall, which permits the communist government to control the internet traffic in the country.
Like Us on Facebook
LinkedIn, unlike other tech giants such as Google, Facebook, and Twitter, agreed to follow China's censorship rules and regulations, and the choice clearly paid off. Since its entry in 2014, its membership increased by over five times, thanks to 20 million users in China.
However, with the recent deal LinkedIn's efforts to enter China may be compromised.
"LinkedIn could somehow be hampered by that relationship," Travis Wu, Beijing's Forrester Research vice president who used to work for Microsoft, said. "It was seen as independent but now it's part of a big machine and if the machine has issues with the government it could affect them."
Furthermore, WinBeta noted that Microsoft has been the target of China's State Administration for Industry and Commerce probes and raids since the country formulated a new set of anti-monopoly laws in 2008.
On the other hand, Microsoft insisted that LinkedIn will remain as a separate entity. A representative from the company reiterated that "LinkedIn will retain its distinct brand, culture, and independence" across all its locations, including China.
LinkedIn, however, refused to comment about the possible problem that could arise following the acquisition.
Last week, Microsoft agreed to buy LinkedIn for $26.2 billion in cash, its biggest purchase ever made. The deal sells at $196 per LinkedIn share.
TagsMicrosoft, LinkedIn, censorship, Internet censorship, Social network
©2015 Chinatopix All rights reserved. Do not reproduce without permission
EDITOR'S PICKS
-
Did the Trump administration just announce plans for a trade war with ‘hostile’ China and Russia?
-
US Senate passes Taiwan travel bill slammed by China
-
As Yan Sihong’s family grieves, here are other Chinese students who went missing abroad. Some have never been found
-
Beijing blasts Western critics who ‘smear China’ with the term sharp power
-
China Envoy Seeks to Defuse Tensions With U.S. as a Trade War Brews
-
Singapore's Deputy PM Provides Bitcoin Vote of Confidence Amid China's Blanket Bans
-
China warns investors over risks in overseas virtual currency trading
-
Chinese government most trustworthy: survey
-
Kashima Antlers On Course For Back-To-Back Titles
MOST POPULAR
LATEST NEWS
Zhou Yongkang: China's Former Security Chief Sentenced to Life in Prison
China's former Chief of the Ministry of Public Security, Zhou Yongkang, has been given a life sentence after he was found guilty of abusing his office, bribery and deliberately ... Full Article
TRENDING STORY
-
China Pork Prices Expected to Stabilize As The Supplies Recover
-
Elephone P9000 Smartphone is now on Sale on Amazon India
-
There's a Big Chance Cliffhangers Won't Still Be Resolved When Grey's Anatomy Season 13 Returns
-
Supreme Court Ruled on Samsung vs Apple Dispute for Patent Infringement
-
Microsoft Surface Pro 5 Rumors and Release Date: What is the Latest?