LinkedIn shares jumped 46.6 per cent on Monday after Microsoft announced it would buy online networking company the for $26.2 billion in its biggest-ever deal as Wall Street stumbled for a third straight session.
Other big tech companies, however, ended lower. Microsoft fell 2.6 per cent after LinkedIn deal announcement. Apple shares fell 1.5 per cent as the iPhone maker held its developers conference in San Francisco. Adding to the pressure from the tech sector, Facebook shares dropped 2.3 per cent after CNBC said Citron Research was shorting the stock.
Security software company Symantec jumped over 5 per cent after it said it will buy security firm Blue Coat for $4.65 billion.
Microsoft will pay $196 per share in an all-cash transaction, a 49.5 per cent premium to LinkedIn’s closing price on Friday. The $196-per-share price tag represented a premium of almost 50 per cent over LinkedIn’s stock market value as of Friday, but was still well below the social media company’s all-time high of $270.
The Dow Jones industrial average closed 132.86 points, or 0.74 per cent down at 17,732.48, the S&P 500 lost 17.01 points, or 0.81 per cent, to 2,079.06 and the Nasdaq Composite dropped 46.11 points, or 0.94 per cent, to 4,848.44.
All 10 S&P 500 sectors ended lower, with materials and tech the biggest decliners. For the year, the benchmark S&P is up 1.7 percent, but has pulled back since closing in on its record high last week.
With agency inputs