Looks like Salesforce was in a bidding war for LinkedIn with Microsoft

The premium $26.2 billion price that Microsoft paid for LinkedIn was a big clue that Microsoft was in a bidding war to buy the company.

It looks like Salesforce was another bidder, sources are telling Bloomberg.

Microsoft had apparently been sort of watching LinkedIn for a few years, these people told Bloomberg, but Microsoft didn't approach LinkedIn. Instead LinkedIn Executive Chairman Reid Hoffman and Chief Executive Officer Jeff Weiner contacted Microsoft CEO Satya Nadella to alert him that they were talking with another company about another deal.

When Microsoft's announced that it was buying LinkedIn on Monday, the tech industry was shocked and baffled.

But Nadella explained that one of the big reasons it wanted LinkedIn was to help it revamp its Dyanmics product line, its product that competes with Salesforce.

Nadella explained it in a sentence to Business Insider's Matt Rosoff. He said that buy buying LinkedIn's professional network:

"It helps us differentiate our CRM product with social selling. It helps us take Dynamics into new spaces like human capital management with recruiting, and learning, and talent management."

Nadella had reportedly attempted to buy Salesforce itself outright last year but the deal fell through when the two couldn't agree on a price. So he was ready to go big on this beefing up this area.

When that deal fell through, insiders say that Microsoft has since ramped up its competition against Salesforce.

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