Diamonds and Dogs
As the world becomes more and more connected, one of today's major social media platforms is being bought out. LinkedIn (LNKD) is surging nearly 50% on news the company has accepted a $26.2 billion cash buyout from Microsoft (MSFT) for $196 a share. LinkedIn's stock has been on a roller coaster ride this year dropping from as high as $220 a share in January to its nadir of $100 in February. LinkedIn's board unanimously accepted the buyout from Microsoft. Good for shareholders unless you bought it at higher levels in January or last year.
The dog of the day is the other side of this merger agreement, Microsoft (MSFT). The tech giant is down 2.5% on heavy volume after agreeing to pay a hefty premium for LinkedIn. LinkedIn's stock dropped 50% back in early February following a disappointing quarterly report. Microsoft is hoping to use LinkedIn to reach more companies and potential clients for their products. The logic sounds right, but not the price. Seems like they could've bought LinkedIn for a 1/3 or ½ the price.