The method in Microsoft’s merger madness

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Satya Nadella has turned Microsoft around, but he seems to be gripped by acquisition fever. Why?

Even before this latest flurry Microsoft had acquired a reputation for coveting tech firms that looked as alien to its core business of selling office software as TikTok’s dance videos are to Word and Excel. Five years ago, in its biggest purchase, it paid $26bn for LinkedIn, a business-oriented social network. In 2018 it picked up GitHub, a development platform for open-source programs, for $7.5bn.“Is Satya Nadella getting bored?” wondered the, a website covering the tech industry.

By its relatively timid standard, though, Microsoft has indeed become more acquisitive in recent years . Having provided textbook examples of what not to do, most notably after buying Nokia, a phonemaker, and Skype, an internet phone service, it has learned how to integrate targets successfully. Under Mr Nadella it has taken on a shape that better lends itself to this process.

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