Microsoft Corporation (NASDAQ:MSFT) is in search of the European Union Antitrust approval; this approval is for the companies $26 billion bid for social network LinkedIn Corp (NYSE:LNKD).
Company spokesman Robin Koch reported this stating “We filed today.”
The European Union has set a date for the case to be November 22. If the European Competition Authority has genuine and serious concerns over this merger, there is likelihood that a lengthy investigation will be launched. However, analysts believe that the deal will be made without any serious concessions.
Issues that Microsoft may face through this merger
The United States based company, known as Salesforce.com, Inc (NYSE:CRM) openly criticized the merger between Microsoft and LinkedIn. The reason behind this, as they claim it to be, is the fact that this merger will threaten innovation, as well as competition.
However, this accusation does follow the rival content in bidding between the two giants, which ultimately Microsoft triumphed in. However, through the bidding wars, Salesforce led Microsoft to have to pay an additional $6 billion higher than the original amount.
In response to this, analysts and tech gurus expect that Microsoft will counter-state that there is an excess of competition from various platforms such as Facebook Inc (NASDAQ:FB), as well as mobile social media platforms.
It has been speculated that the authorization of this deal will take approximately one month for regulators to overview, and decide on whether or not to approve or decline the acquisition.
Affiliate Antitrust approval
Although Microsoft is searching for approval from the European Union for its merger, there is already substantial proof that the deal will go through unhindered. This claim comes in the form of other countries antitrust regulators having already approved the merger. These countries extend to the United States, Canada, as well as Brazil.
The reason behind the merger between Microsoft and LinkedIn is to enable Microsoft to expand and develop its cloud computing business rapidly. In addition to this, Microsoft stated that through the integration, the company would be able to target potential leads more efficiently.
Microsoft closed stock at $57.42 which is an increase of $0.50 or 0.88%
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