Share, all crash. The deal is expected to close this calendar year. Jim, you just talked to andrew, becky and joe about this. Yeah. You know when you go back over the arc of linkedin, obviously going into the february quarter there was a belief that things were continuing to accelerate. You had 30 growth. You really felt like there was very, very little economic sensitivity. Then you got that incredible shortfall, going from 192 basically down to 9,800, and it was entirely because of the lighter guidance. The guidance, they use the term seasonality. Well, were not used to hearing seasonality with linkedin, 30 going down to 20 . There really wasnt any line item that was good. You saw deceleration in core hiring, you saw challenges in marketing solutions, you saw macro fx headwinds. We dont want to hear that. The last quarter reported at the end of april was quite good. And every one of those items went back up, and thats why the stock was able to recover. But they are getting microsoft is getting this company before, at a price before it collapsed but well below where it was at the high. Yes. Began the year 225 or so, but the 196 is almost exactly where it was q4 earnings debacle. Some comments from wiener just as we had changed the way the world connects with opportunity, this relationship with microsoft and the combination of their cloud and linkedins network now gives us a chance to also change the way the world works. Theyre calling it a refounding moment for linkedin. Well talk to nadella and weiner first on cnbc at 10 00 a. M. This is good for everybody. In the last quarter that microsoft reported, there was a Conference Call that was a Conference Call where i really felt we got some feedback about the negativity about the Conference Call, but i thought that was a call about there are plans to be bigger in the cloud as youre really taking lets just say a slowing of its growth. So, what happened was you started thinking, well, wait a second, is microsoft just a pc company with xbox and slowing cloud, given the fact that they did not buy sales force . I didnt think sales force was ever for sale, but i think they would have loved it. Remember, this was a goal by sachin to get much bigger in the cloud faster. So, you think how could they do it . This was tightly under wraps on friday yes. Which is good news. But linkedin hurt the whole group, if you go back to february. Everything social, mobile and cloud, sales force, obviously, that was tenweek. Software had a bad number. But you saw everything in the cloud go down because you started thinking cloud had seasonality. No. Linkedin was the socialmobile cloud opportunity that professional microsoft obviously being professional. Youll see Companies Like twitter go out. You could see tripadvisor go up, yelp could go up, anybody thats involved in keeping a list. But linkedin, this was just a once in a lifetime opportunity before linkedin started ramping back. I felt that when i went over the call, the february call again just this morning for linkedin, i was struck by how down they were. I was struck by how they felt the growth had kind of peaked. Now, they disputed it themselves. They had kind of a conflict internally, because that last quarter was showing a little bit of a pickup, but it didnt matter. Microsoft got its man. This is very positive for microsoft. And i dont care that its not accretive. Obviously, microsoft was not getting a hot multiple. Minute dilutive. But now youre speaking about sales force, adobe, oracle, although oracle is obviously, its platform is software, too, and well hear from them this week. And now microsoft. Microsoft had missed social, missed cloud, they had missed mobile. By the way, Steve Ballmer before satya came in admitted as much by saying listen, you know, like we were off track. True. Very positive. Very positive. Weiner and nadella have apparently put together a Youtube Video which well see in a moment. Lets take a look at that they point out theyve been working on this for a while, which raises the question how much else out there do you think is being seriously evaluated by other companies . Well, objection, i think that microsoft was unique in n that it had a lot of cash and did not have much socialmobile cloud. If you look at chuck robbins, what he did with mcisco. He started buying mobile securities. Obviously, facebook does not need a deal, theyre doing so much right. Alphabet has so many moonshots, theyre not involved in this, an outfit of course is google. They dominate social mobile cloud. They dont need to make a move. But does apple need to make a move . Now theyve got the Developers Conference. What is it . I do i do and they do have social, but not as much. They certainly dominate mobile and cloud. But your point is that the list of buyers is limited . Oh, linkedin no one will come in on linkedin i mean in general for enterprise, social. Well, microsoft was uniquely berift. The converse was satyas doing his best, hes trying to get in cloud. Benioff has big admissions, okay, take that off the table. Suddenly, linkedin nobody would have thought it was for sale, but then they have a bad quarter. Youre buying linkedin at a price that he should not be able to get. Sure. Thats why i think its so smart. And linkedin was not tapped out, but they said certain things on the Conference Call. I wanted to wring their necks on that Conference Call. We all remember that quarter. It was like, are you kidding me . Now weve got to i remember that morning, that afternoon when it happened, and then that morning where im calling all these companies, im saying is the cloud slowing . No, just for linkedin. Is mobile slow . No, just for linkedin. Yeah. Is there now suddenly do we have a situation where the world slowing is impacting tech . It turned out to be refuted. It was only linkedin, and then linkedin accelerated. Brilliant move by microsoft. Were not going to think of that company with a 12, 13 multiple anymore. Next quarter i was dreading for microsoft, saying what are they going to say . Windows 10, surface. The nfl uses it. I mean, ah they gave you something to talk about. Yeah, they definitely did. Amy hood is so lucky, because amy hood i detected, again, disputed by the company, i detected a moment of velsmirkh. What does that mean . Its a german word, im not feeling that great, maybe things could get better. Its great to have one word like that. Frank quau tyrone of catalyst hes back bigger than ever says its the largest sale by an Internet Company ever. Quatrones always big, big, big. I always like him. Hes back and this is a very big deal for him. Thats great. I mean, somebodys going to say, you like quatrone, what is that about . Definitely a second act in tech. Yes we mentioned that Youtube Video of nadella and weiner. I think we have a piece of it. Are we going to take sound full here . Nope. This is just to see what it looks like. Im sure youll be hearing this later on. But the deal obviously getting the blessing not just of nadella and the boards, but reid hoffman in particular. Yeah. You want him to stick around. I mean, i looked at that linkedin im going over the linkedin Conference Call that was the culprit, the february 4th Conference Call. And you know, they were like i remember their jaws dropped as it was going on, and a lot of people were emailing back and forth saying they dont mean it. Well, they really mean it. And this is just such a positive to be able to say, hey, listen, you know, it really is i mean, there were questions that come in here, like steve sar dello, the linkedin cfo the Online Business has been decelerating over the last few years, kind of a structural deceleration. Huh . Its like, whats he talking about . I remember calling marc benioff, whats he talking about . He said, hey, business is fine. Stop it. Stop it. But i was in panic mode. How could you not . Well talk later this morning about what it does to the overall mood regarding the markets, mobile growth well, people coming in i was watching the coverage early morning, and i was like, okay, obviously, well have to talk the tragedy. And im not but it was like, okay, bad day, bring it on. Right. We do want to talk about the tragedy in orlando that left 49 victims dead over the weekend. We now know it was the deadliest mass shooting in u. S. History. Our eamon javers is live with the latest developments. Good morning. Reporter good morning, karl. Fbi special agent in charge here in orlando said this morning that the bureau has investigated up to 100 separate leads as they try to figure out exactly what happened here in orlando, florida, over the weekend. The bureau also examining the possibility that there may have been at least more than one person involved in this attack. Heres what the special agent in charge said about that possibility. We do not know yet whether anyone else will be charged in connection with this crime. I do want to let you know that we have no reason to believe that anyone connected to this crime is placing the public in imminent danger at this time, but there is an investigation of other persons. Reporter so, other persons unknown at this point. What we are learning this morning this morning, guys, is a little bit more about omar mateen himself. He is 29 years old, was born in new york, moved to florida and has lived here for several years in florida. He worked as a Security Guard for a firm called g4s. His exwife gave a statement yesterday saying he was abusive and mentally unstable. She said despite all that, one of his ambitions in life was to be a police officer. And to give you a sense at just how at a loss officials are in piecing this all together, as they go back and trace the history, they realize that the fbi actually had contact with mateen as early as 2013. There were concerns raised by some coworkers that he was potentially violent, potentially had contacts with terrorist networks. At the kproepress conference th morning, they continued to put out the call to anyone who knew this man to call the fbi and tell them what they knew, carl. Eamon javers in orlando, thank you for that. A lot more to come on that story today. Still come, as we said, the ceos of microsoft and linkedin on their blockbuster deal, 26. 2 billion. Take another look at the premarket. Its going to be a big week. A twoday fed meeting. Weve got the brexit, of course, polls continue to come in. Havent gotten yet to the china data or wwdc. More squawk on the street live from post 9 in just a moment. Futures lower this morning. Stocks falling around the globe. Overnight in asia, shanghai down more than 3 on weaker Chinese Investment data that came over the weekend. Nikkei down 3. 5 due to a stronger yen. European markets under pressure amid some uncertainty surrounding next weeks brexit vote. And all of that is ahead of the twoday fed policy meeting set to begin tomorrow. Well get a statement on wednesday. Shanghai, nikkei down three will get your attention. Yeah. Remember, a lot of these things that happened, we are stronger than everybody. And the reason why were stronger than everybody is because if the yen gets strong, thats just very bad for auto sales. I mean, its something that ford has been calling to happen. So, when we see this, the takeaway should not be, oh, wow, ive got to sell some of our companies. Its, oh, thats a good break. And i think that we too often confuse the two. We say, wow, that if japans down, we should be down. But if japan is down because the yen is more expensive, then when you go to buy a toyota, you get a bargain. So lets keep that in mind. I mean, you go to buy ford, you get a bargain. We started the morning talking about microsoft linkedin. Now, citrons andrew left, well known for his call on valeant, is telling cnbc this morning in a phone interview that he is short facebook. Right. A little bit more evaluation oriented than what weve seen. Look, andrews had a couple of major hits. If he had something that i think would be regarded as that there is something wrong at facebook per se, rather than valuation, then i think theres more to it. Now, they had been up like 80 points and this stock has been topee in the last few days, as is much of tech. But look, if you want to sell it, andrew gets short and loud. I happen to respect his work tremendously. Im not downgrading it at all. I am saying that unless theres a smoking gun like there was at valeant at 150, you know, he wants to call the top. A lot of people call the top in facebook. In his words, i see facebook losing share to snapchat, overstaying its welcome in other niches. Im not saying facebook is a bad company, just wont be a 330 billion company in a year. Well, look, i think that facebook is one of those companies that youre betting against people who dont who will make it look like a company thats different from it does now. Look, Citron Andrew when he comes out with something is, you know, im sure hell be on multiple shows. Hes very outspoken. I find him very compelling when he talks. I generally like him. You know, i think he does some quality work. Ive been around the block with him on valeant, on wayfair. So i find that the intellectual jousting is good. But you know, if hes calling just the top saying its expensive and its losing its relevancy, a lot of people have been saying that for a long time. Yeah. I mean, a lot of people i mean, look, my kids who dont follow stocks that well, they say listen, facebook is losing relevancy to instagram. But you dont want to correct your kids. Well, thats a good point. Yes, dear, yes, dear. Gold, up 12 bucks from 1,300 again. Right. Do you believe these brexit polls that show a leave with a tenpoint lead . Do you care . I was listening to someone on with sara and wilf, their show today. And there was a guy who had resigned from a key position in commerce, and he said listen, it has to happen. And it was very good, because sara was ready with 7,248 institutions that are saying, no, this would be bad. And the guy just said, eh, come on, its all a big exaggeration. But yeah, mine, those of us who follow it very closely who follow europe very closely, almost everybody whos involved in decisions are frozen. Theyre frozen. I mean, real estate and construction. Of course. Like, wow, whats going to happen . And no one really knows. British operation gets crushed because of the translation. So, it is important. Its very important. And its, unfortunately, very abstract to americans. But one of the reasons, again, just like the yen being strong why is our market doing well while a lot of others are doing poorly . Well, because we dont have this. Now, golds up because gold trades internationally and the gold stocks by the way, American Eagle going up. Youre seeing barrett going up. Watch rang rangold had a weak quarter but has the one with the best prospects. A fourweek high, something to watch. Up almost 3 last week. And i think everyone should own gold as an insurance policy. I dont think you should drive around that insurance policy. Thats been a very out of sync position, but i dont care. R rand gold, by the way, the last quarter had a couple things that were wrong. That goes to 100 in my face. You mentioned apple in the last block. They are kicking off their annual Developers Conference today in san francisco. The companys expected to debut some expanded capabilities for siri as well as its latest mobile operating system and some new software for the watch. Theyre getting bigfooted a bit by the other news out of seattle. Yeah. You know, i mean, geez, satya didnt plan, nor did andrew left, who emails me and says the engagement numbers coming out lately show peak facebook. Its like the high peaks of the adirondacks. So, they cannot move the needle of this company. The teams done a wonderful job connecting people. It does not mean it can grow. So, this is not one of those things that you want to just say youve got to short it. But look at this, now here he goes. He goes long linkedin on february 8th with the data to drop. So, this is andrews day, andrew left citron day. Well make it satyas day. There were, i would say, a school of investors who got in because no one believed linkedin could have two quarters that bad. And that was right i mean, well it wasnt just linkedin that had a bad quarter. Go back over the microsoft april 21 quarter, and amy hood says the intelligent cloud segment, as i go, as opposed to the stupid cloud segment i didnt like that the intelligent cloud segment delivered 6. 1 billion in revenues, which grow 3 and 8 just at the low end of our guidance range. And that was one of like that was another one of those ah hah moments. Yes. Well, thats changed. This is no longer going to be that guidance. Association youll hear their cash really wasnt doing anything. Youre going to hear a lot of analysts say listen, im no longer concerned. There is a moment in the Conference Call where they were talking about how windows 10, were still a windows 10 company. No theyre no longer a windows 10 company. Some people are trying to say, what does this valuation say about the other reported valuations were getting on the yahoo bids . Reuters today saying that verizon and at t qualify for the final round. Well, ive been saying that verizon and at ts going to steal that company, but ali babas brought that company down a bit. There is an ali baba meeting coming up. I have said this is underrated, yahoo but its got to happen sooner. Yahoo is a company that almost feels like a wasting asset. So theyve got to make a move soon. Look, if at t at t stock has been the strongest in that group, trading like a highgrowth utility. Those companies have the cash. If they want higher multiples, theyve got to buy this. This is about getting higher multiples, paying more for their earnings. Yes, reuters hopes to wrap up the auction by july i hope its wrapped up. I dont know, it may be wrapped up by 2017. This thing has been the least wrapped up wrappedup thing ive ever heard. Yes. When we come back, the big board will hold a moment of silence for the orlando shooting victims. Dont go away. Most of the show. woman and theres no way to restart it. jon bon jovi with directv there is. You see, weve got the power to turn back time so lets restart the show that started at nine and while were at it, lets give you back your do and give her back the guy she liked before you hey, thats the power to turn back time. vo get the ultimate allincluded bundle. Call 1800directv. Experience the thrill of the lexus is f sport. Because the ultimate expression of power, is control. This is the pursuit of perfection. E trade is all about seizing opportunity. And id like to. Cut. Thank you, well call you. Evening, film noir, smoke, a