Bloomberg's Rana on Microsoft, Talev on Clinton, Orlando(Audio)

closest to you. SMP five hundred index moving lower by seven points to two thousand eighty eight, a drop of four tenths of one percent down, Industrials down fifty nine, a drop of three tenths of one percent, and has stacked down twenty four a drop of five tenths of one percent. Ten You up six thirty second, Zeal there one point six one percent, Gold up ten dollars ten cents, the ounce to twelve eighty six, a gain of eight tenths of one percent. Crude oil down twenty four cents

for eighty three on West Texas Intermediate. That is a drop of five tenths of one I'm Charlie Pellett and that's a Bloomberg business flash. You're resuming to taking stock with pin Box and Kathleen News on Bloomberg Radio. Microsoft, in what is by far the largest acquisition in the company's history, said it has reached a deal to purchase linked In. That's the professional social networking company. Price tag twenty six point two billion dollars in cash. Here to

tell us more on ag Rana. He is our senior analyst of software and I T Services for Bloomberg Intelligence, providing unique real time research and context on a variety of industries and all the markets and government factors that affect business. Our terminal customers can access this function. Just type b I go on the Bloomberg on a rag. Why is Microsoft buying a social network in company? I think that's the first thing we saw this morning and I thought this, you know, thought about the same um

you could say, can underum that outmost everybody had. But you know, when you look at this thing, Microsoft is looking at to expand into areas and cloud and mobile that those are the two things have always talked about ever since the new CEO came on. And within the cloud, they already have a good handle on the infrastructure services. They have a good handle on platform of the services where they were really behind this cloud application something that

UM salesforce cells, workday cells. But when you look at something like a LinkedIn, you can start using this as a as a software where people can't look at prospective their their clients there, you know, if they want to hire somebody, so you can bypass the custom applications um, you know, through this particular avenue. That's just one way of looking at it. It's by far there are the five biggest deals. I mean, it's by far the biggest, right it is, you know, looking at Skype or Nokia

or others. Uh. But for LinkedIn, obviously somebody's making a lot of money. But besides that, in terms of their business model and how they grow the company and how you know they mesh with Microsoft, what does they mean for them? See one of the things they said, and they talked about this being trying to get into the CRTM space a couple of years ago. Um, they had some little bit of hiccups over there in that area. They the stock really got you know, beaten up over

the last few months. And you know, one could argue with Microsoft under the Microsoft umbrella or their backing or the financial mind, the distribution network, they can possibly achieve what they want, uh, you know, far better on the Microsoft than they were they could do as an independent company. Now I'm just looking at the details for LinkedIn about three billion in revenue, correct, and we're talking about net

income of oops, it doesn't have any net income. So what is Microsoft going to bring to the party that will turn this into a profit making enterprise? So you as as you remember, Microsoft is one of the companies that provides legacy software. It's been around for ages. The question is how does it be an enterprise company for

the next ten years. And you have a lot of these Internet based companies that are trying to um you know, increase their network, increase their product portfolio, and Microsoft can help them with that regard, and this company helps Microsoft of trying to give products that are more relevant for

the next generation. I don't think you want to look at it from a creative point of view or the financial point of view at this point to see whether it's strategically fits with the company or not, and then go out and examine two to three years from now to see how it stands financially well and it's it just is what does it tells? Though? I guess about uh, you're you're you're telling us, but I'm really trying to see them. Where is Microsoft going? Because this is some

people consider LinkedIn basically social media side, right. Definitely, it's not a technology side. It's got some tech analogy that it's it's infrastructure, but it's about bringing people together, bringing people together, absolutely, Cathleene. So think about it this way. What does salesforce dot com provide? It provides a portal for sales people to go in and enter their records to figure out who did I talk to today? Who's

my right prospect? How can I reach out to them and have that whole history of conversation there to make sure how I close my deal? Why can't you do that with Lincoln? If you if you are a recruiter today, why do you need a human capital management software where you wanna you're looking for prospective going out and looking for some employees for talent acquisition? Why don't you just go to LinkedIn and hire someone directly from there? And then you have to think about it. Can you extend

this platform to use it internally? Whether you want to monitor the life of an employee ever since that person came into the firm to the point they left and left the phone. Does it somehow bring me closer to the Microsoft brand? If I'm not in the Microsoft world otherwise, but I now I'm part of linked In, I don't think about I mean, I don't think that helps in that way. It truly helps Microsoft case of being a

little bit more relevant in the cloud world. Do you think that we're going to come back and look at this as a Nokia deal, because you know, I gotta say, everything that you've described about LinkedIn was almost exactly what Steve Bomber said when they acquired Nokia. The Nokia was slightly different that the Angel over there was consumer and I mean they were looking truly behind the mirror when they were doing this. This one is a lot more

forward looking. All right, Well, Ana, Grana, you're going to be staying one step ahead. So we're gonna let you get back to work because you're a very busy man today. Senior analysts of software and I T Services for Bloomberg Intelligence joining us in our Bloomberg eleven thirty studio in New York. Now, how we are going to Margaret tal if she's senior White House reporter for Bloomberg editorial. She is joining us from Hillary Clinton's speech today, so she's also,

did I say, senior White House correspondent. That's why she's in Cleveland. Some regret what did Hillary Clinton say today and how did it resonate after the Orlando of shootings. Of course, a much more somber tone than what she had expected to be doing inclusum today. This was originally supposed to be her sort of debut battleground state appearance, you know, sort of a victory lap but without alienating Bernie Sanders fans, etcetera. It obviously turned into something much different.

A moment of silence before she took the stage, uh, and then a message UM that was both a gun controlled message and an inclusivity message, but also a tough on terrorism message, saying that um uh, the US has to respond by taking military style weapons off the street, that this is a call to prevent the proliferation of

the sort of assault weapons UM. But at the same time that Saudi Arabian and their US allies and partners that reaching have to do more themselves to stop funding or allowing people uh in their own countries to fund radical She had um efforts and UH, suggesting also that Donald Arms approach is the wrong approach UM in terms of talking about bands on LOGM, immigration and that sort of saying calling for the country to return to a sort of unity spirit like there was after nine eleven.

That was her message today, Margaret, I wonder if you could speak to the issue of terrorism as a political debating point when it comes to the battle between Donald Trump and Hillary Clinton in the election. Certainly. I mean when Secretary Clinton took the stage today, she said, today is not about politics, but of course this has become immediately about politics, uh since the Sunday early Sunday morning shooting. UM. Both candidates today this is dominating the dialogue in the debate.

Secretary Clinton again using this renew call for doing control to talk about inclusivity, support for LGBT community, and support for American Muslims. Donald Trump using this both to call on President Obama and Secretary Clinton had stepped down and step back, and to renew calls for immigration bands UH and surveillance of Muslims. So two really different approaches, each galvanizing their basis. The political question, of course, is what

does the middle of America. What do independence and moderate Americans ideologically want to hear and want to see done from their leaders. Well, it seems significant to me, and you just mentioned this that she's focusing on Saudi Arabia for example, and and allowing funding for terrigors organizations to occur. She's addressing schools that radical Muslims, we would consider them radical from our point of view. At least are are teaching kids there are certain ideology. How hard can she

drive that point home? And how far do you think that takes her with the electorate politically? That's an appealing message, you know for Americans. I think that, Uh. The nuance to watch for is how she addresses the threat today calling it radicals Johodism. You don't hear her talking much about radical Islam or radical Muslims, although the word yet he certainly conveys the Lama as opposed to be a

different religion, but talking about radical johda Uh. Hillary Clinton is trying to calibrate this in a way where she can show both of her experience a Secretary of State, uh, and in terms of her outlook that she is, you know, tough and willing to say tough things, even two allies, but at the same time that she doesn't think the right approaches is to turn that toughnessness inward on all

Muslim Americans. UM trying to sort of send off what will be Republican Donald Trump's attacks on her, you know, toughness and't willing to fight UM, while while still saying that she's not going to get drawn into kind of an emotional rhetorical battle. I want to thank you very

much for joining us. Margaret Tullef, Senior White House correspondent for Bloomberg News in Cleveland today, I mean attended Secretary Clinton's speech earlier in the day, and just to note, our hearts and our prayers go out to the victims and the families of the shooting in Orlando, and we also send our thoughts to the people of Orlando. You're listening to taking Stock on pim Fox my co host Kathleen Hayes. You're listening to Bloomberg Radiohea