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Speaker 1: drop of five tenths of one I'm Charlie Pellett and

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Speaker 1: that's a Bloomberg business flash. You're resuming to taking stock

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Speaker 1: with pin Box and Kathleen News on Bloomberg Radio. Microsoft,

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Speaker 1: in what is by far the largest acquisition in the

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Speaker 1: company's history, said it has reached a deal to purchase

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Speaker 1: linked In. That's the professional social networking company. Price tag

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Speaker 1: twenty six point two billion dollars in cash. Here to

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Speaker 1: tell us more on ag Rana. He is our senior

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Speaker 1: analyst of software and I T Services for Bloomberg Intelligence,

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Speaker 1: providing unique real time research and context on a variety

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Speaker 1: of industries and all the markets and government factors that

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Speaker 1: affect business. Our terminal customers can access this function. Just

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Speaker 1: type b I go on the Bloomberg on a rag.

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Speaker 1: Why is Microsoft buying a social network in company? I

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Speaker 1: think that's the first thing we saw this morning and

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Speaker 1: I thought this, you know, thought about the same um

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Speaker 1: you could say, can underum that outmost everybody had. But

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Speaker 1: you know, when you look at this thing, Microsoft is

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Speaker 1: looking at to expand into areas and cloud and mobile

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Speaker 1: that those are the two things have always talked about

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Speaker 1: ever since the new CEO came on. And within the cloud,

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Speaker 1: they already have a good handle on the infrastructure services.

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Speaker 1: They have a good handle on platform of the services

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Speaker 1: where they were really behind this cloud application something that

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Speaker 1: UM salesforce cells, workday cells. But when you look at

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Speaker 1: something like a LinkedIn, you can start using this as

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Speaker 1: a as a software where people can't look at prospective

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Speaker 1: their their clients there, you know, if they want to

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Speaker 1: hire somebody, so you can bypass the custom applications um,

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Speaker 1: you know, through this particular avenue. That's just one way

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Speaker 1: of looking at it. It's by far there are the

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Speaker 1: five biggest deals. I mean, it's by far the biggest,

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Speaker 1: right it is, you know, looking at Skype or Nokia

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Speaker 1: or others. Uh. But for LinkedIn, obviously somebody's making a

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Speaker 1: lot of money. But besides that, in terms of their

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Speaker 1: business model and how they grow the company and how

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Speaker 1: you know they mesh with Microsoft, what does they mean

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Speaker 1: for them? See one of the things they said, and

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Speaker 1: they talked about this being trying to get into the

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Speaker 1: CRTM space a couple of years ago. Um, they had

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Speaker 1: some little bit of hiccups over there in that area.

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Speaker 1: They the stock really got you know, beaten up over

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Speaker 1: the last few months. And you know, one could argue

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Speaker 1: with Microsoft under the Microsoft umbrella or their backing or

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Speaker 1: the financial mind, the distribution network, they can possibly achieve

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Speaker 1: what they want, uh, you know, far better on the

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Speaker 1: Microsoft than they were they could do as an independent company.

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Speaker 1: Now I'm just looking at the details for LinkedIn about

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Speaker 1: three billion in revenue, correct, and we're talking about net

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Speaker 1: income of oops, it doesn't have any net income. So

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Speaker 1: what is Microsoft going to bring to the party that

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Speaker 1: will turn this into a profit making enterprise? So you

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Speaker 1: as as you remember, Microsoft is one of the companies

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Speaker 1: that provides legacy software. It's been around for ages. The

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Speaker 1: question is how does it be an enterprise company for

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Speaker 1: the next ten years. And you have a lot of

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Speaker 1: these Internet based companies that are trying to um you know,

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Speaker 1: increase their network, increase their product portfolio, and Microsoft can

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Speaker 1: help them with that regard, and this company helps Microsoft

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Speaker 1: of trying to give products that are more relevant for

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Speaker 1: the next generation. I don't think you want to look

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Speaker 1: at it from a creative point of view or the

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Speaker 1: financial point of view at this point to see whether

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Speaker 1: it's strategically fits with the company or not, and then

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Speaker 1: go out and examine two to three years from now

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Speaker 1: to see how it stands financially well and it's it

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Speaker 1: just is what does it tells? Though? I guess about uh,

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Speaker 1: you're you're you're telling us, but I'm really trying to

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Speaker 1: see them. Where is Microsoft going? Because this is some

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Speaker 1: people consider LinkedIn basically social media side, right. Definitely, it's

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Speaker 1: not a technology side. It's got some tech analogy that

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Speaker 1: it's it's infrastructure, but it's about bringing people together, bringing

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Speaker 1: people together, absolutely, Cathleene. So think about it this way.

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Speaker 1: What does salesforce dot com provide? It provides a portal

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Speaker 1: for sales people to go in and enter their records

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Speaker 1: to figure out who did I talk to today? Who's

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Speaker 1: my right prospect? How can I reach out to them

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Speaker 1: and have that whole history of conversation there to make

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Speaker 1: sure how I close my deal? Why can't you do

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Speaker 1: that with Lincoln? If you if you are a recruiter today,

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Speaker 1: why do you need a human capital management software where

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Speaker 1: you wanna you're looking for prospective going out and looking

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Speaker 1: for some employees for talent acquisition? Why don't you just

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Speaker 1: go to LinkedIn and hire someone directly from there? And

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Speaker 1: then you have to think about it. Can you extend

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Speaker 1: this platform to use it internally? Whether you want to

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Speaker 1: monitor the life of an employee ever since that person

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Speaker 1: came into the firm to the point they left and

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Speaker 1: left the phone. Does it somehow bring me closer to

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Speaker 1: the Microsoft brand? If I'm not in the Microsoft world otherwise,

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Speaker 1: but I now I'm part of linked In, I don't

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Speaker 1: think about I mean, I don't think that helps in

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Speaker 1: that way. It truly helps Microsoft case of being a

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Speaker 1: little bit more relevant in the cloud world. Do you

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Speaker 1: think that we're going to come back and look at

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Speaker 1: this as a Nokia deal, because you know, I gotta say,

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Speaker 1: everything that you've described about LinkedIn was almost exactly what

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Speaker 1: Steve Bomber said when they acquired Nokia. The Nokia was

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Speaker 1: slightly different that the Angel over there was consumer and

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Speaker 1: I mean they were looking truly behind the mirror when

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Speaker 1: they were doing this. This one is a lot more

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Speaker 1: forward looking. All right, Well, Ana, Grana, you're going to

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Speaker 1: be staying one step ahead. So we're gonna let you

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Speaker 1: get back to work because you're a very busy man today.

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Speaker 1: Senior analysts of software and I T Services for Bloomberg

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Speaker 1: Intelligence joining us in our Bloomberg eleven thirty studio in

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Speaker 1: New York. Now, how we are going to Margaret tal

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Speaker 1: if she's senior White House reporter for Bloomberg editorial. She

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Speaker 1: is joining us from Hillary Clinton's speech today, so she's also,

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Speaker 1: did I say, senior White House correspondent. That's why she's

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Speaker 1: in Cleveland. Some regret what did Hillary Clinton say today

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Speaker 1: and how did it resonate after the Orlando of shootings.

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Speaker 1: Of course, a much more somber tone than what she

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Speaker 1: had expected to be doing inclusum today. This was originally

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Speaker 1: supposed to be her sort of debut battleground state appearance,

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Speaker 1: you know, sort of a victory lap but without alienating

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Speaker 1: Bernie Sanders fans, etcetera. It obviously turned into something much different.

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Speaker 1: A moment of silence before she took the stage, uh,

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Speaker 1: and then a message UM that was both a gun

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Speaker 1: controlled message and an inclusivity message, but also a tough

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Speaker 1: on terrorism message, saying that um uh, the US has

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Speaker 1: to respond by taking military style weapons off the street,

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Speaker 1: that this is a call to prevent the proliferation of

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Speaker 1: the sort of assault weapons UM. But at the same

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Speaker 1: time that Saudi Arabian and their US allies and partners

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Speaker 1: that reaching have to do more themselves to stop funding

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Speaker 1: or allowing people uh in their own countries to fund

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Speaker 1: radical She had um efforts and UH, suggesting also that

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Speaker 1: Donald Arms approach is the wrong approach UM in terms

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Speaker 1: of talking about bands on LOGM, immigration and that sort

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Speaker 1: of saying calling for the country to return to a

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Speaker 1: sort of unity spirit like there was after nine eleven.

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Speaker 1: That was her message today, Margaret, I wonder if you

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Speaker 1: could speak to the issue of terrorism as a political

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Speaker 1: debating point when it comes to the battle between Donald

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Speaker 1: Trump and Hillary Clinton in the election. Certainly. I mean

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Speaker 1: when Secretary Clinton took the stage today, she said, today

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Speaker 1: is not about politics, but of course this has become

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Speaker 1: immediately about politics, uh since the Sunday early Sunday morning shooting. UM.

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Speaker 1: Both candidates today this is dominating the dialogue in the debate.

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Speaker 1: Secretary Clinton again using this renew call for doing control

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Speaker 1: to talk about inclusivity, support for LGBT community, and support

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Speaker 1: for American Muslims. Donald Trump using this both to call

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Speaker 1: on President Obama and Secretary Clinton had stepped down and

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Speaker 1: step back, and to renew calls for immigration bands UH

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Speaker 1: and surveillance of Muslims. So two really different approaches, each

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Speaker 1: galvanizing their basis. The political question, of course, is what

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Speaker 1: does the middle of America. What do independence and moderate

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Speaker 1: Americans ideologically want to hear and want to see done

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Speaker 1: from their leaders. Well, it seems significant to me, and

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Speaker 1: you just mentioned this that she's focusing on Saudi Arabia

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Speaker 1: for example, and and allowing funding for terrigors organizations to occur.

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Speaker 1: She's addressing schools that radical Muslims, we would consider them

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Speaker 1: radical from our point of view. At least are are

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Speaker 1: teaching kids there are certain ideology. How hard can she

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Speaker 1: drive that point home? And how far do you think

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Speaker 1: that takes her with the electorate politically? That's an appealing message,

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Speaker 1: you know for Americans. I think that, Uh. The nuance

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Speaker 1: to watch for is how she addresses the threat today

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Speaker 1: calling it radicals Johodism. You don't hear her talking much

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Speaker 1: about radical Islam or radical Muslims, although the word yet

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Speaker 1: he certainly conveys the Lama as opposed to be a

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Speaker 1: different religion, but talking about radical johda Uh. Hillary Clinton

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Speaker 1: is trying to calibrate this in a way where she

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Speaker 1: can show both of her experience a Secretary of State, uh,

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Speaker 1: and in terms of her outlook that she is, you know,

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Speaker 1: tough and willing to say tough things, even two allies,

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Speaker 1: but at the same time that she doesn't think the

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Speaker 1: right approaches is to turn that toughnessness inward on all

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Speaker 1: Muslim Americans. UM trying to sort of send off what

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Speaker 1: will be Republican Donald Trump's attacks on her, you know,

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Speaker 1: toughness and't willing to fight UM, while while still saying

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Speaker 1: that she's not going to get drawn into kind of

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Speaker 1: an emotional rhetorical battle. I want to thank you very

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Speaker 1: much for joining us. Margaret Tullef, Senior White House correspondent

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Speaker 1: for Bloomberg News in Cleveland today, I mean attended Secretary

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Speaker 1: Clinton's speech earlier in the day, and just to note,

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Speaker 1: our hearts and our prayers go out to the victims

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Speaker 1: and the families of the shooting in Orlando, and we

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Speaker 1: also send our thoughts to the people of Orlando. You're

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Speaker 1: listening to taking Stock on pim Fox my co host

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Speaker 1: Kathleen Hayes. You're listening to Bloomberg Radiohea