Source: Yes, LinkedIn and News Corp. are working on a deal

November 27, 2007 | Eric Eldon | Comments | |

linkedinlogo.pngA rumor surfaced last week, in Techcrunch UK, that News Corp. is looking at buying business networking site LinkedIn.

A well-placed source has confirmed with us that these talks are serious. LinkedIn has declined to comment.

News Corp.’s strategy, from what we understand: Somehow integrate LinkedIn’s network with the Wall Street Journal as well as its other newspapers around the world, hopefully figuring out how to recoup News Corp.’s newspapers’ declining classified ad revenue in the process.

The driving force behind the deal is Jeremy Philips, according to our source. Philips is a rising star in the media conglomerate. At age 33, he is already an executive vice president under News Corp. chairman Rupert Murdoch, who our source says he is very close with.

Philips focuses on acquisitions and general strategy, and is overseeing internet investments, according to this article from last year. He operates separately from Fox Interactive Media — he has established a group called NIM, or News (Corp) Interactive Media, our source says.

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About the Author, Eric Eldon

Eric currently covers digital media technology and business news, especially what's happening on social networks and their platforms. He also writes and edits stories about venture capital, and lots of other stuff, too. He started at VentureBeat in the spring of 2007, half a year or so after Matt Marshall left his reporting job at the San Jose Mercury News to found the site. Eric previously cofounded a startup called Writewith, that was building editorial software for newspapers and other groups of writers. The startup didn't work out, but he learned a lot.

  • I think its a terrific move by News Corp. At least 1.5B??
  • I wonder what the "synergy" is supposed to be.
  • Jimmy
    Oh crap - now i'll have to take down my profile.
  • How much could LinkedIn, an "also ran" if there ever was one, get? $500M on a good day?
  • I still don't understand what synergies both companies have. Linkedin can go further especially in professional services and by selling now it might be selling itslef at low price.
    I don't think either of them will be getting maximum value out of it at this stage. Linkedin is premature at this stage.
  • courtney benson
    As a LinkedIn memeber I can see Linkedin going down hill fast if News Corp acquires it. The only advantage I can see at this time is that Reid Hoffman makes another killing. Good for him if he sells it. Like the others who have posted, I don't see the fit other than $$$ for Reid.
  • There will be a lot more acqusitions to come given how fragmented the social web has become. As soon as there is traction with serious business applications merger mania will proceed.

    News Corp is very good at making strategic moves that disrupt markets and this will be fun to follow. Linkedin will be changed and leveraged for real business networking and likely, like MySpace, dominate the business nich and draw a whole new segment to the medium.

    Kudos to Philips
  • woo
    Move to plaxo.com if News Corp buys LinkedIn. News Corp is just a front for the Republican Party Propaganda.
  • Sam
    If 5% of facebook is valued at 15 billion, I would seriously hope that LinkedIn holds out for more than 1.5 billion.
  • Annie Scott
    This is indeed news than being told a rumor, basically because of the publicity that linkedin has gained all over it can be strongly believed on that any big wig company like "News Corp.'s" would not hesitate such decisions & especially when well placed sources spill the bean.Is it also true that linkedin & facebook are being made available on on mobiles in the US without GPRS, internet & edge.Now is that a new strategy they are using????
    www.modazzle.com?channel=mobilenet4
  • Did you know that there is a 94% chance that your website isn't compliant with current laws. Take a minute and fix it. It really does protect you against all kinds of severe penalties if you get tagged. In this modern day of utter stupidity
  • I wasn’t sure where to make this post, and I am sorry, if I posted in the wrong place