The markets desk, where julie hyman is tracking the moves. The fed, the doj, with big corporate m a deals. Julie it has become a busier week today with microsoft and linkedin, yet today it seems like faster tracking oil prices, not necessarily those other events. When oil started to make a recovery, we saw stock to the same. Now stocks are tracking right along with it. Alternate day averages briefly in the red after going briefly positive midmorning. The nasdaq is now down three quarters of 1 . Take a look at whats going on within the groups here. Overall the s p 500 is tracking oil prices, trajectory why is it does remain higher. Tech shares are weighing the most on the s p. Taking a look at the big cap within the group thats falling, microsoft declining after ring to buy linkedin and apple shares shareshe report that will fall 8. 6 yearoveryear. Facebook has been lower, missing a price here for some reason. A bit of a glitch going on here. But they did say they were shorting shares of microsoft, revealing the short today. Good stuff, thank you, julie. Every monday we zero in on m a deals in the making or breaking the insight and analysis from the Players Behind the deals. Shares of Linkedin Oliver shares of linkedin soaring after being agreed to be picked up by microsoft. Scarlet emily chang joins us from San Francisco, along with jeff mccracken. Emily, what did you learn . They want linkedin . And why now . Emily what a deal to talk about a deal to talk about on merger monday. The first huge deal under the o. Crosoft io e. Adding 58 to the addressable market, according to microsoft. We talking about a big potential future business. I think that those stocks dropped after the last few months after that Earnings Report earlier this year, which had something to do with it. It certainly made the price more attractive. I asked that question, why this price, why now . Take a listen to what he had to say. It is about bringing together at thefessional cloud core of microsoft and the professional network. The dream we always had was how can we connect these worlds so that our mutual users can get their work done more seamlessly . Thats the vision. I spoke with jeff weiner a few months ago on studio 1. 0 and we talked about how big he believes the future of linkedin is. I said why would you sell it for a price less than what it was trading at six months ago . Take a listen to what he had to say. Been about the realization of our longterm mission and vision. Think about the global footprint of microsoft. One billion plus. Seamlessly integrating our network, a social fabric, if you will, throughout their ecosystem. So, what he said was look, the future for us just got bigger. Of course microsoft has made whereig deals in the past they havent executed the integration very well. Think about note yet or skype to a certain extent. Integration and execution here will be key. Oliver all right, scarlet all right, emily, thank you for joining us. Oliver something fresh to chew on, considering most of the spotlight has been dominated by the sales saga. A topic our next guest knows quite well. On what and one dollar trillion in transactions. The dollar tree purchase of Family Dollar combined with immediate merger with continental airlines. Welcome to the deals report. Still with us, jeff mccracken. What exactly is the catalyst making this happen right now . Chris the price at linkedin has dropped 40 . I also think that microsoft made a pitch that they would be able to run independent. Much the way they been able to integrate into microsoft. Its good that we have chris here, so that we can talk about how these deals impact other companies. Viewpoint, you have been around the situation where you have been the one doing the big deal or you have had a client on the other side doing a big deal. How does this impact the board level . The end of the day, you have to remember that this is a cash deal. There must be some decisionmaking process that says, whats the status quo Value Proposition for our own shareholders . Materiallyropped earlier in the year and is this premium enough to compensate shareholders . At the same time we care about our employees in this business and we wanted to be in good hands, so there had to be a Merger Partnership as well to make sure it was going to do well under the microsoft umbrella, so it is the. Thats a nice balance for the , also thinkinger about the business longerterm. On the microsoft side, certainly as they look at the puzzle and what they are trying to fill in and social, mobile, they must look at that and see that there are ways to do it externally or internally and the Value Proposition, paying a price for excess cash or an extremely strong Balance Sheet to get a business like that, understanding how it is going to fit, it really is a revenue story. Perhaps diluted slightly in the next couple of years. You are step back hoping to solve a longterm strategic positioning of the business, really making both sides come together. Jeff the other big deal is yahoo . Been aly activists have big story behind yahoo . What are your thoughts on activists this year, tech or other spaces . We have gone through a transition where i would describe activist assets under management growing exponentially. Last year 120 3 billion. This year it dropped of it for a couple of reasons. Money onhave lost specific investments or certain funds, plateauing a bit, but actual activist campaigns are roughly going to be the same that they been. Down a little now, an important dialogue today. I do think its covering two aspects. The new emphasis is less on recapture and more on what the quality of your board is, the right directors with the right skills for the longterm. I have a point of view on that and i may have some suggestions for you. I dontide is figure to can make it as a standalone public company. Maybe consider a sale or merger with someone else. Yahoo started with that early on with regards to maybe a partner for yahoo a while back. I do think that those avenues of activism, major changes, m a oriented, were more subtle in terms of the skill set of the board, where we are seeing a lot of things happening this year and that should continue through the rest of the calendar year. Some would even call this a soap opera. It really all began with star board value earlier this year. What we did see in january was warming up torted the idea of a sale ended february they announced that they were exploring Strategic Options and shortly after the roque the news the company would start approaching potential bidders, like verizon, at t, the likes of those. From there on the potential suitors kept rolling in. Fast forward to april, yahoo began to narrow the field ranging from 4 billion to 8 billion. Last month we reported that Warren Buffett backed group that at t decided to put both feet. Nto the ring oliver im wondering, does the timing of todays deal, the premium involved or the type of deal change anything in terms of whats happening . Jeff i dont think it impacts yahoo at all. We knew that the second round bids were in. Dealprobably will get it done early in july. Three weeks, maybe four weeks left in this Long National nightmare of what might happen to yahoo . I dont know if you feel differently, chris. Chris as it has been laid out, the process is underway. On the microsoft board, thinking about this, star board as a board member. Elevating these types of deals valuation. Rt of the scarlet what about when we talk all caps deals . Chris what is puzzling me is how the private equity buyer has been absent for 400 billion in Equity Capital available by ratio of debt to that equity two to one. Over one dollar trillion in buying power, but it has been disciplined. Multiple fore the those companies that interest them have been high. How do they get that Purchase Price . It does dampen the equity returns and put a premium above the relatively high multiple. What we have seen them do over the last year or two is the net sellers in their portfolio with other private Equity Companies where they may have a different angle to catapult. I do think that for the end of this year and into next is that earnings slowly continue to grow , equity multiples might dampen a bit with a hungrier private equity universe emerging to compete. Jeff you and i have talked in the past about government scrutiny. They changed the tax code, if you will, by treasury. Do you sense that this is something that could be private equity without coming to the table for the regulatory problems . Chris absolutely. If one has execution risk and one doesnt, they may not have ,he same hurdles in front of it but the board can more comfortably look at that bid with closed with more confidence closed or certainly. Obviously there has been a tradeoff. We are seeing chinese buyers entering the market. Between the emerging private equity buyer universe and strategics, is a great time to consider being a seller. Pockets of buyers of different stripes that could be interesting in terms of the competitive dynamic. Is it is it scarlet because there is a lack of regulatory concern . Chris if they look at the price if they themselves there is a bit of a risk to get that price. As that narrows and becomes more certain, we talked about this last year. When dollar tree ended its acquisition of Family Dollar, the board chose to take the dollar tree bid because they had confidence that they could get that beale eventually to get that deal eventually to the finish line. We helped them to pull off that trade, value for certainty. Chris, jeff, thank you very much. Coming up next, the fbi director is scheduled to address the shooting in orlando. We will be going live to washington when it happens. Stay with us. Scarlet you are watching bloomberg markets. Oliver lets check in on the first word news. Mark crumpton has more from the newsroom. President obama says there is no clear evidence that the shooter at an orlando nightclub was directed to conduct his attack or part of a larger plot. He made his comments this morning in the oval office. the one thing that we can say is that this is being treated as a terrorist investigation. It appears that the shooter was extremists various information disseminated over the internet. Mark the fbi says that the interview the suspected killer twice because of possible ties to terrorism. Both times the agency closed the. Nvestigation 49 people killed, 53 wounded in the attack. The team was killed in a shootout with police. Before the shooting he called 911 to proclaim his allegiance to the islamic state. The u. S. Supreme court has struck down a law that would have let them restructure their debt over the objection of creditors. The court ruled that it was barred under federal bankruptcy laws. Turning to rivals in the labour party to stop them from leaving the European Union. Willround, cameron needed make the case to stay in the eu. Labor support is crucial if camerons government is to avoid a brexit. Yes, of course there would be concerns in the Financial Markets. Yes, there would be uncertainty for a number of years as they work out their new trading relationship. But the real challenge for the country would be this britain would be permanently poorer. They would be trading less. They would be less productive. This programming note, we are standing by for the director of the fbi. You are looking at a live shot from fbi headquarters in washington. He will be discussing the mass shooting that took place this weekend. Global news, 24 hours per day, powered by 2400 journalists in 150 news bureaus around the world. We continue in just a moment. Scarlet this is bloomberg markets. Julie hyman has been checking on some of todays winners. Although the big indexes are down, there are a couple of gainers. Julie the only deal announced today was not the microsoft deal. It is symantec, buying a Company Called blue coat systems. It is a much smaller deal, to be fair. Its not nothing, its not inconsequential. Symantec shares have been surging. The company has been trying to remake itself away from its antivirus roots and follow the evolving needs of cyber security. The company is going to get a new ceo. Blue coat moving over to take the helm as well. That is another reason we are seeing the shares gain. Although symantec has gone through several different ceos over the past several years. Nvidia this morning, raised to a by getting a big boost in price over 35. 55 analysts theyre talking about higher average selling prices for the chip, as well as some new videogame titles that could by nvidia. Exxon mobil today as well, talking about the rally in Energy Stocks as oil fluctuated, trading at a 52week high. Shares higher by 1 . Finally, one of the sort of fallouts from the mass shooting, like we saw in orlando, the typical pattern, a surge in gun stocks. Typical speculation that there could be increased regulation of guns, so we tend to see spending patterns on guns go higher. People buying more guns as they anticipate the regulation. As i noted earlier, that regulation has not emerged, but nonetheless we do tend to see this pattern after these mass shooting events. Once again today, smith wesson and stern ruger seeing increases in share prices. Wever we should scarlet should mention that we are waiting for the fbi director james comey to make his remarks. This comes after the attacks in orlando, florida. And it looks like they have just entered the room and are taking the stage. Washington,r now to where the fbi director there on the left is getting ready to make remarks on the orlando shooting. Could afternoon, everyone. Thank you all for being here today. We are here to discuss the justice departments response to the stunning and unconscionable acts in orlando. Our hearts are broken for the unfathomable losses the people there have suffered. Our thoughts and prayers continue to be with their family and loved ones. As the attorney general said the full resources of the department of justice, including the fbi, the atf, the National Security division in the middle district of georgia, they are all supporting the ongoing investigation. The agents and investigators have been on the ground since the beginning and have been working around the clock since yesterday and will continue to do so in the days ahead. I want to thank our Law Enforcement colleagues in florida for their tireless and extraordinary work so far. Theve been in contact with attorney general, currently on her way back from china, continuing to monitor developments in the case. Words really cannot express the depth of our sorrow or the measure of our grief for the losses that have been suffered by those, lives that have been changed forever. What happened in orlando yesterday was a horrifying act. A horrifying act of evil in terror. For the lg bt community, pulse was more than just a way to more than just a place to go and celebrate and see friends. It was a place that promised inclusion and freedom. To be themselves. The same promise our country holds for everyone. This is this was an attack on that promise. And itsk on our country values. An attack on who we are as a nation and as a people. Our country as a whole stands united in response to this cowardly and despicable act. With this i will turn things over to the director, who will provide Additional Details on where we are in the investigation right now. Ir. Comey thank you i want to echo what the Deputy Attorney general said just now. Our hearts are broken in a for those who are lost in orlando, those wounded and their families. We are so sorry for your loss and suffering. Thanksto say a word of and express admiration for the work of local Law Enforcement in orlando. They showed professionalism and export married bravery. We are lucky that such good People Choose lives of service in Law Enforcement. Lastly i want to say a word of thanks to the people that rendered care that saved lives at the scene. The doctors, the emts, the nurses, the victims specialists, the ordinary service ordinary citizens, showing us the best part of humanity in the midst of terrible loss. This is a terror investigation led by the fbi, with the assistance as we always have of our state, local, and federal partners. The reason for that is there are strong indications of radicalization by this killer and of potential inspiration by foreign terrorist organizations. We are spending a tremendous amount of time, as you would imagine, trying to understand every moment of the killers path to that terrible night. You will notice that im not using the killers name. I will try not to do that. Part of what motivates sick people to do this kind of thing is some twisted notion of fame or lori and i dont want to be part of that, for the sake of the victims and their families. And so that other twisted minds dont think that this is a path to fame and recognition. What i want to do is give you a sense of what we know so far and then tell you as much as we can about past contact with the killer. We are going to his life, especially his electronics, to understand as much as we can about his path and whether there so farone else involved we see no indication that this was a plot directed from outside the United States and no indication that he was part of any kind of network. It is also not entirely clear at this point just what terrorist group he aspired to support. Though he made clear his affinity at the time of the , generallyisil leading up to the attack for radical islamic groups. He made 911 calls from the club during the attack at about 2 30 in the morning, sunday morning. There were three different calls. He called and he hung up. He called again and spoke briefly with the dispatcher. The dispatcher called him back again, and they spoke briefly. Three total calls. During the calls he said he was doing this for the leader of named. Isil, whom he but he also claimed solidarity for the purpose with the perpetrators of the Boston Marathon bombing in a florida man who died as a syrian as a suicide bomber for a group in conflict with the socalled islamic state. Bombers at the Boston Marathon and the suicide bomber from flori