Microsoft (MSFT: $50, down 2) has agreed to acquire LinkedIn (LNKD: $193, up $62 - 48%) for $26 billion. This is big. It is an all cash offer at $196 a share. The professional social network will be merged into Microsoft’s Enterprise Cloud Services division. Before the announcement the stock was up 14% in the last three months but down 50% from its high of $258 in November.  Â
We added the stock a few months ago at $101 so it is a big winner for us and we hope for you. At this point we remove the stock from our Special Opportunities Portfolio, since the story is over. It is just beginning at Microsoft, but over as a standalone company.
Twitter (TWTR: $15.20, up 8%) and Netflix (NFLX: $97, up 3%) have reacted favorably to the news, as they are buyout candidates, noted here at The Bull Market Report many times. Apple itself is down at bit (AAPL: $98, down 1%) since they are the likely buyer and we would guess that Apple is kicking itself for not buying LinkedIn and would now want to start to move more quickly for a big acquisition. We think they are saying: If Microsoft can do it, Apple can – we have more cash!
We’ll look for a replacement for LinkedIn in our Special Opportunities Portfolio. Will it be Restoration Hardware (RH: $26), down from its high of $106 last summer? Stay tuned.