Microsoft's $26.2 billion deal on Monday to acquire LinkedIn for $196 per share is a huge deal for Microsoft CEO Satya Nadella, but is it as big a deal for tech stocks? Kensho took a look at tech deals over $5 billion going back to 2000 to see how tech performs the week after a big deal is announced.
Some observers have said it will put Salesforce.com back in play and pique interest in Twitter; others say that it's now Google's turn to respond. The New York Times took a skeptical look at the deal, arguing that it may have been about LinkedIn's slumping share price and the need to retain employees paid heavily in company stock. In any event, Kensho is good at tuning out the market pundits and tuning in to the acual performance of stocks around key events. Below are returns of some key tech stocks and benchmarks a week after a deal of $5 billion or more.
Another thing to keep in mind looking over the history of mega tech deals is that many have been judged by history as failures, some even of the epic variety. The deals included are below.