Latest / Bloomberg Intelligence / Bloomberg's Rana on Microsoft, Talev on Clinton, Orlando(Audio)

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Bloomberg's Rana on Microsoft, Talev on Clinton, Orlando(Audio) · Bloomberg Intelligence

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  Speaker 1: that's a Bloomberg business flash. You're resuming to taking stock
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  Speaker 1: with pin Box and Kathleen News on Bloomberg Radio. Microsoft,
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  Speaker 1: in what is by far the largest acquisition in the
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  Speaker 1: company's history, said it has reached a deal to purchase
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  Speaker 1: linked In. That's the professional social networking company. Price tag
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  Speaker 1: twenty six point two billion dollars in cash. Here to
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  Speaker 1: tell us more on ag Rana. He is our senior
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  Speaker 1: analyst of software and I T Services for Bloomberg Intelligence,
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  Speaker 1: providing unique real time research and context on a variety
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  Speaker 1: of industries and all the markets and government factors that
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  Speaker 1: affect business. Our terminal customers can access this function. Just
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  Speaker 1: type b I go on the Bloomberg on a rag.
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  Speaker 1: Why is Microsoft buying a social network in company? I
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  Speaker 1: think that's the first thing we saw this morning and
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  Speaker 1: I thought this, you know, thought about the same um
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  Speaker 1: you could say, can underum that outmost everybody had. But
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  Speaker 1: you know, when you look at this thing, Microsoft is
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  Speaker 1: looking at to expand into areas and cloud and mobile
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  Speaker 1: that those are the two things have always talked about
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  Speaker 1: ever since the new CEO came on. And within the cloud,
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  Speaker 1: they already have a good handle on the infrastructure services.
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  Speaker 1: They have a good handle on platform of the services
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  Speaker 1: where they were really behind this cloud application something that
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  Speaker 1: UM salesforce cells, workday cells. But when you look at
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  Speaker 1: something like a LinkedIn, you can start using this as
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  Speaker 1: a as a software where people can't look at prospective
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  Speaker 1: their their clients there, you know, if they want to
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  Speaker 1: hire somebody, so you can bypass the custom applications um,
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  Speaker 1: you know, through this particular avenue. That's just one way
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  Speaker 1: of looking at it. It's by far there are the
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  Speaker 1: five biggest deals. I mean, it's by far the biggest,
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  Speaker 1: right it is, you know, looking at Skype or Nokia
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  Speaker 1: or others. Uh. But for LinkedIn, obviously somebody's making a
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  Speaker 1: lot of money. But besides that, in terms of their
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  Speaker 1: business model and how they grow the company and how
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  Speaker 1: you know they mesh with Microsoft, what does they mean
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  Speaker 1: for them? See one of the things they said, and
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  Speaker 1: they talked about this being trying to get into the
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  Speaker 1: CRTM space a couple of years ago. Um, they had
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  Speaker 1: some little bit of hiccups over there in that area.
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  Speaker 1: They the stock really got you know, beaten up over
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  Speaker 1: the last few months. And you know, one could argue
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  Speaker 1: with Microsoft under the Microsoft umbrella or their backing or
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  Speaker 1: the financial mind, the distribution network, they can possibly achieve
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  Speaker 1: what they want, uh, you know, far better on the
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  Speaker 1: Microsoft than they were they could do as an independent company.
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  Speaker 1: Now I'm just looking at the details for LinkedIn about
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  Speaker 1: three billion in revenue, correct, and we're talking about net
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  Speaker 1: income of oops, it doesn't have any net income. So
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  Speaker 1: what is Microsoft going to bring to the party that
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  Speaker 1: will turn this into a profit making enterprise? So you
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  Speaker 1: as as you remember, Microsoft is one of the companies
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  Speaker 1: that provides legacy software. It's been around for ages. The
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  Speaker 1: question is how does it be an enterprise company for
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  Speaker 1: the next ten years. And you have a lot of
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  Speaker 1: these Internet based companies that are trying to um you know,
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  Speaker 1: increase their network, increase their product portfolio, and Microsoft can
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  Speaker 1: help them with that regard, and this company helps Microsoft
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  Speaker 1: of trying to give products that are more relevant for
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  Speaker 1: the next generation. I don't think you want to look
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  Speaker 1: at it from a creative point of view or the
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  Speaker 1: financial point of view at this point to see whether
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  Speaker 1: it's strategically fits with the company or not, and then
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  Speaker 1: go out and examine two to three years from now
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  Speaker 1: to see how it stands financially well and it's it
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  Speaker 1: just is what does it tells? Though? I guess about uh,
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  Speaker 1: you're you're you're telling us, but I'm really trying to
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  Speaker 1: see them. Where is Microsoft going? Because this is some
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  Speaker 1: people consider LinkedIn basically social media side, right. Definitely, it's
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  Speaker 1: not a technology side. It's got some tech analogy that
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  Speaker 1: it's it's infrastructure, but it's about bringing people together, bringing
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  Speaker 1: people together, absolutely, Cathleene. So think about it this way.
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  Speaker 1: What does salesforce dot com provide? It provides a portal
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  Speaker 1: for sales people to go in and enter their records
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  Speaker 1: to figure out who did I talk to today? Who's
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  Speaker 1: my right prospect? How can I reach out to them
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  Speaker 1: and have that whole history of conversation there to make
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  Speaker 1: sure how I close my deal? Why can't you do
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  Speaker 1: that with Lincoln? If you if you are a recruiter today,
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  Speaker 1: why do you need a human capital management software where
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  Speaker 1: you wanna you're looking for prospective going out and looking
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  Speaker 1: for some employees for talent acquisition? Why don't you just
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  Speaker 1: go to LinkedIn and hire someone directly from there? And
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  Speaker 1: then you have to think about it. Can you extend
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  Speaker 1: this platform to use it internally? Whether you want to
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  Speaker 1: monitor the life of an employee ever since that person
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  Speaker 1: came into the firm to the point they left and
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  Speaker 1: left the phone. Does it somehow bring me closer to
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  Speaker 1: the Microsoft brand? If I'm not in the Microsoft world otherwise,
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  Speaker 1: but I now I'm part of linked In, I don't
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  Speaker 1: think about I mean, I don't think that helps in
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  Speaker 1: that way. It truly helps Microsoft case of being a
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  Speaker 1: little bit more relevant in the cloud world. Do you
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  Speaker 1: think that we're going to come back and look at
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  Speaker 1: this as a Nokia deal, because you know, I gotta say,
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  Speaker 1: everything that you've described about LinkedIn was almost exactly what
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  Speaker 1: Steve Bomber said when they acquired Nokia. The Nokia was
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  Speaker 1: slightly different that the Angel over there was consumer and
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  Speaker 1: I mean they were looking truly behind the mirror when
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  Speaker 1: they were doing this. This one is a lot more
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  Speaker 1: forward looking. All right, Well, Ana, Grana, you're going to
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  Speaker 1: be staying one step ahead. So we're gonna let you
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  Speaker 1: get back to work because you're a very busy man today.
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  Speaker 1: Senior analysts of software and I T Services for Bloomberg
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  Speaker 1: Intelligence joining us in our Bloomberg eleven thirty studio in
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  Speaker 1: New York. Now, how we are going to Margaret tal
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  Speaker 1: if she's senior White House reporter for Bloomberg editorial. She
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  Speaker 1: is joining us from Hillary Clinton's speech today, so she's also,
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  Speaker 1: did I say, senior White House correspondent. That's why she's
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  Speaker 1: in Cleveland. Some regret what did Hillary Clinton say today
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  Speaker 1: and how did it resonate after the Orlando of shootings.
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  Speaker 1: Of course, a much more somber tone than what she
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  Speaker 1: had expected to be doing inclusum today. This was originally
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  Speaker 1: supposed to be her sort of debut battleground state appearance,
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  Speaker 1: you know, sort of a victory lap but without alienating
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  Speaker 1: Bernie Sanders fans, etcetera. It obviously turned into something much different.
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  Speaker 1: A moment of silence before she took the stage, uh,
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  Speaker 1: and then a message UM that was both a gun
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  Speaker 1: controlled message and an inclusivity message, but also a tough
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  Speaker 1: on terrorism message, saying that um uh, the US has
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  Speaker 1: to respond by taking military style weapons off the street,
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  Speaker 1: that this is a call to prevent the proliferation of
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  Speaker 1: the sort of assault weapons UM. But at the same
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  Speaker 1: time that Saudi Arabian and their US allies and partners
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  Speaker 1: that reaching have to do more themselves to stop funding
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  Speaker 1: or allowing people uh in their own countries to fund
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  Speaker 1: radical She had um efforts and UH, suggesting also that
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  Speaker 1: Donald Arms approach is the wrong approach UM in terms
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  Speaker 1: of talking about bands on LOGM, immigration and that sort
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  Speaker 1: of saying calling for the country to return to a
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  Speaker 1: sort of unity spirit like there was after nine eleven.
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  Speaker 1: That was her message today, Margaret, I wonder if you
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  Speaker 1: could speak to the issue of terrorism as a political
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  Speaker 1: debating point when it comes to the battle between Donald
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  Speaker 1: Trump and Hillary Clinton in the election. Certainly. I mean
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  Speaker 1: when Secretary Clinton took the stage today, she said, today
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  Speaker 1: is not about politics, but of course this has become
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  Speaker 1: immediately about politics, uh since the Sunday early Sunday morning shooting. UM.
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  Speaker 1: Both candidates today this is dominating the dialogue in the debate.
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  Speaker 1: Secretary Clinton again using this renew call for doing control
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  Speaker 1: to talk about inclusivity, support for LGBT community, and support
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  Speaker 1: for American Muslims. Donald Trump using this both to call
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  Speaker 1: on President Obama and Secretary Clinton had stepped down and
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  Speaker 1: step back, and to renew calls for immigration bands UH
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  Speaker 1: and surveillance of Muslims. So two really different approaches, each
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  Speaker 1: galvanizing their basis. The political question, of course, is what
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  Speaker 1: does the middle of America. What do independence and moderate
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  Speaker 1: Americans ideologically want to hear and want to see done
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  Speaker 1: from their leaders. Well, it seems significant to me, and
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  Speaker 1: you just mentioned this that she's focusing on Saudi Arabia
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  Speaker 1: for example, and and allowing funding for terrigors organizations to occur.
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  Speaker 1: She's addressing schools that radical Muslims, we would consider them
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  Speaker 1: radical from our point of view. At least are are
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  Speaker 1: teaching kids there are certain ideology. How hard can she
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  Speaker 1: drive that point home? And how far do you think
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  Speaker 1: that takes her with the electorate politically? That's an appealing message,
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  Speaker 1: you know for Americans. I think that, Uh. The nuance
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  Speaker 1: to watch for is how she addresses the threat today
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  Speaker 1: calling it radicals Johodism. You don't hear her talking much
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  Speaker 1: about radical Islam or radical Muslims, although the word yet
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  Speaker 1: he certainly conveys the Lama as opposed to be a
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  Speaker 1: different religion, but talking about radical johda Uh. Hillary Clinton
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  Speaker 1: is trying to calibrate this in a way where she
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  Speaker 1: can show both of her experience a Secretary of State, uh,
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  Speaker 1: and in terms of her outlook that she is, you know,
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  Speaker 1: tough and willing to say tough things, even two allies,
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  Speaker 1: but at the same time that she doesn't think the
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  Speaker 1: right approaches is to turn that toughnessness inward on all
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  Speaker 1: Muslim Americans. UM trying to sort of send off what
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  Speaker 1: will be Republican Donald Trump's attacks on her, you know,
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  Speaker 1: toughness and't willing to fight UM, while while still saying
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  Speaker 1: that she's not going to get drawn into kind of
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  Speaker 1: an emotional rhetorical battle. I want to thank you very
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  Speaker 1: much for joining us. Margaret Tullef, Senior White House correspondent
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  Speaker 1: for Bloomberg News in Cleveland today, I mean attended Secretary
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  Speaker 1: Clinton's speech earlier in the day, and just to note,
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  Speaker 1: our hearts and our prayers go out to the victims
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  Speaker 1: and the families of the shooting in Orlando, and we
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  Speaker 1: also send our thoughts to the people of Orlando. You're
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  Speaker 1: listening to taking Stock on pim Fox my co host
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  Speaker 1: Kathleen Hayes. You're listening to Bloomberg Radiohea