There is a bit of head scratching going on over why Linkedin chose Microsoft’s lower offer for its company over a bigger one offered by Salesforce.
Microsoft wrote a cheque for $26.2 billion for the social notworking site, which was lower than what was offered by Salesforce. However Salesforce CEO Marc Benioff said that he was willing to go much higher and would have changed other terms of the bid if he had been given the chance.
In a filing with regulators on Friday, LinkedIn said a board committee met on 7 July to discuss an email from Salesforce CEO Marc Benioff.
“The email indicated that Party A would have bid much higher and made changes to the stock/cash components of its offers, but it was acting without communications from LinkedIn,” LinkedIn said in the updated filing with the Securities and Exchange Commission.
LinkedIn has said its board was concerned about other problemswith a Salesforce bid, including the fact that a deal would have required approval from its shareholders. LinkedIn could still go with another bid if one comes in, but its deal with Microsoft contains a $725 million breakup fee provision.
Salesforce was the only serious rival to Microsoft.