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00:00WELL AS 2018. JOINING US FOR MORE, CORY JOHNSON ON THE PHONE. WHY DID MICROSOFT WANT TO BUY LINKEDIN? >> IT IS INTERESTING. IT IS A HUGE DEAL. IT PUTS THEM IN A SITUATION WHERE THEY WANT TO BE OFFERING BUSINESS SERVICES, SOFTWARE BUSINESS SERVICES, WITH PROFITABLE MARGINS. LINKEDIN HAS MARGINS GROWING FAST. IT PUTS THEM IN A POSITION HAVING A LOT OF GROWTH. IT IS A VERY EXPENSIVE DEAL TO ACQUIRE THAT GROWTH. LINKEDIN IS GROWING WORLDWIDE AND HAS HAD SUCCESS IN CHINA. IT IS ONE OF THE LARGEST, FASTEST-GROWING SOCIAL MEDIA COMPANIES IN THE WORLD. DAVID: GIVE ME THE STRATEGY HERE FROM MICROSOFT'S POINT OF VIEW. THIS IS A BIG DEAL. WHY DO YOU MAKE THIS MOVE? >> LAST YEAR, WE BROKE THE STORY MICROSOFT WAS IN TALKS TO BUY SALESFORCE. THERE WERE THREE COMPANIES WE HAVE HEARD MICROSOFT MIGHT BE INTERESTED IN GETTING INTO THE ENTERPRISE SOFTWARE BUSINESS. THAT CLEARLY IS THE DIRECTION HE WANTS TO TAKE THE COMPANY. WITH SALESFORCE, THERE WAS TRUE TO THAT LAST YEAR, A VERY EXTENSIVE COMPANY. NOW I KNOW WHY SOME OF MY MICROSOFT SOURCES HAVE NOT BEEN CALLING ME BACK. THIS IS NOT A SURPRISE IN TERMS OF NAME. IT IS A BIT OF A SURPRISE IN TERMS OF TIMING. FINALLY WE SEE HE IS MAKING A BIG MOVE. IT IS IN A DIRECTION WHERE THERE IS A LOT OF GROWTH. THIS IS A COMPANY THAT STRADDLES SOCIAL MEDIA AND ENTERPRISE SERVICES, CLOUD SERVICES. IT IS A STATEMENT IN THE DIRECTION MICROSOFT WANTS TO GO IN. ALIX: THERE IS A CALL AT 11:45 EASTERN. WE WILL HAVE THE C.E.O. OF MICROSOFT AND THE C.E.O. OF LINKEDIN. MR. WEINER WILL CONTINUE TO BE THE C.E.O. OF LINKEDIN. I WANT TO GIVE YOU PERSPECTIVE OF HOW BIG THE DEAL IS FOR MICROSOFT. THESE ARE THE ACQUISITIONS IN RECENT YEARS. THIS IS THE VALUE. HOLD ON A SECOND. LINKEDIN IS ABOUT $26.4 BILLION. SKYPE WAS ITS NEXT BIGGEST DEAL, BUT ONLY $8.5 BILLION. THIS IS A HUGE BET FOR MICROSOFT. DAVID: A HUGE BET. IT IS A LOT CHEAPER THAN SALESFORCE WOULD HAVE BEEN. >> IF YOU LOOK AT THIS IN TERMS OF WHAT YOU'RE GETTING, YOU HAVE A COMPANY AT AN INFLECTION POINT. IT IS EXPECTED TO BEAT EXPECTATIONS. IT IS EXPECTED TO HAVE A 27% OPERATING MARGIN THIS YEAR. IT HAS A $1 BILLION PROFIT THIS YEAR. IT IS VERY IMPORTANT FOR THIS COMPANY BECAUSE IT IS AN INFLECTION POINT. SUDDENLY, IT FITS INTO MICROSOFT'S OVERALL INCOME STATEMENT, GOALS, AND WHAT THEY ARE TRYING TO GET TO. JON: GIVE ME MORE INSIGHT ON THE PRICE. THE PREMIUM STANDS HUGE AT 49.5%. BASED ON WHERE THE STOCK WAS A FEW MONTHS AGO, BEGINNING THE YEAR AROUND $200 A SHARE, WE NEED TO THINK ABOUT WHERE LINKEDIN IS COMING FROM. CAN YOU GIVE IT MORE PERSPECTIVE? >> THOSE ARE DEAL NOTES ON WHAT THE COMPANY WILL BE COMFORTABLE WITH. YOU ALSO HAVE TO LOOK AT WHAT MICROSOFT IS WILLING TO PAY. IN THE CASE OF SALESFORCE, HE WOULD BE PAYING FOR A COMPANY BURNING THROUGH CASH LIKE CRAZY. YES, GROWING ON THE TOP LINE BUT NOT SHOWING MUCH ON THE BOTTOM LINE. I'M TALKING ABOUT THE ADJUSTED NUMBERS. IT IS JUST AS IMPORTANT TO THINK ABOUT WHAT THIS COMBINED COMPANY IS GOING TO LOOK LIKE. THE COMPANY ASPECTS PUTS MICROSOFT IN A POSITION TO ACQUIRE A COMPANY TAKING OFF IN

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Microsoft Buying LinkedIn in Deal Valued at $26.2B

Microsoft has announced that it will purchase LinkedIn Corp. in a deal valued at $26.2 billion, paying $196 per share or a 49.5 percent premium to LinkedIn's closing price on Friday. Bloomberg's Cory Johnson and Alex Sherman have the details on "Bloomberg ‹GO›." (Source: Bloomberg)

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