On the news, LinkedIn's market capitalization increased to nearly $26 billion, while Microsoft's market capitalization actually dropped $10.6 billion.  Explain the drop in Microsoft's market capitalization. What is going on?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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On the news, LinkedIn's market capitalization increased to nearly $26 billion, while Microsoft's market capitalization actually dropped $10.6 billion.  Explain the drop in Microsoft's market capitalization. What is going on?

Microsoft buys LinkedIn
On June 13, 2016, Microsoft announced it was acquiring LinkedIn for $26.2 billion. Consider the
following chart showing the market capitalization in billions of the two companies, where the data for
June 10 and June 13 is highlighted:
Date
06/08/2016
06/09/2016
06/10/2016
06/13/2016
06/14/2016
06/15/2016
06/16/2016
LinkedIn
$17.9
$18.2
$17.5
$25.7
$25.6
$25.6
$25.5
Microsoft
$409.1
$405.8
$404.7
$394.1
$391.7
$390.6
$396.1
Transcribed Image Text:Microsoft buys LinkedIn On June 13, 2016, Microsoft announced it was acquiring LinkedIn for $26.2 billion. Consider the following chart showing the market capitalization in billions of the two companies, where the data for June 10 and June 13 is highlighted: Date 06/08/2016 06/09/2016 06/10/2016 06/13/2016 06/14/2016 06/15/2016 06/16/2016 LinkedIn $17.9 $18.2 $17.5 $25.7 $25.6 $25.6 $25.5 Microsoft $409.1 $405.8 $404.7 $394.1 $391.7 $390.6 $396.1
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