We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,259 News Articles

LinkedIn gets SAP investment

Boost for business social networking site

SAP's venture capital arm has sunk an undisclosed sum of money into LinkedIn, the business-oriented social-networking site.

While there are obvious parallels between the two companies, particularly the current and potential new SAP customers among LinkedIn's reported 30 million-plus members, it's too soon to know exactly what SAP has in mind, observers said.

"Bear in mind SAP Ventures is somewhat independent of the mothership - the investment doesn't necessarily mean SAP is looking at a potential future acquisition," said James Governor, an analyst with Redmonk. "However, SAP is clearly thinking about changing notions of identity, community, knowledge and 2.0, especially given the Business Objects acquisition."

451 Group analyst China Martens said there's clearly a way for SAP to connect its software offerings with LinkedIn.

"There's interest among CRM [customer relationship management] players to find ways to prefill their systems with content - LinkedIn could help there - as well as on the HR side," Martens said. "Also, all CRM players are keen to push the social-networking side of CRM. There could be something of this too."

However, Martens noted that SAP Ventures has made a variety of "very good bets on interesting companies in recent years", including on open-source companies like content-management player Alfresco and BI (business intelligence) vendor Jaspersoft.

At least for now, SAP is saying little about how its relationship with LinkedIn may evolve.

"Part of our overall venture strategy is to invest selectively and prudently in smart, leading technology companies," said spokesman Saswato Das.

SAP has no immediate plans regarding LinkedIn beyond its financial investment, Das said.

LinkedIn did not immediately respond to a request for comment.

SAP's stake is part of a $22.7m pot raised by LinkedIn. Other investors in the funding round include McGraw-Hill and Goldman Sachs.


IDG UK Sites

Nokia branding killed in place of 'Microsoft Lumia': Windows Phone moves into new era

IDG UK Sites

Why you shouldn't buy the iPad mini 3: No wonder Apple gave it 10 seconds of stage time

IDG UK Sites

Halloween Photoshop tutorials: 13 masterclasses for horrifying art, designs and type

IDG UK Sites

Should you update your iPhone or iPad to iOS 8? iOS 8.1 brings back Camera Roll, adds Apple Pay in...