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?
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
Section: Chapter Questions
Problem 1PS
Related questions
Question
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?
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education