- Kimberly White/Getty Images for Vanity Fair
Twitter shares spiked by as much as 5% in pre-market trading Monday following news that Microsoft is buying LinkedIn for $26.2 billion.
After a relatively quiet year for mergers and acquisitions activity across the market and in Silicon Valley, the news is a sign that dealmaking is picking up again.
And for Twitter, a possible acquisition target that’s struggling like LinkedIn, this is presumably good news. The social network has struggled to grow its number of active monthly users and ad sales.
LinkedIn has also fallen out of favor with analysts and investors recently. In February, the stock suffered its worst intraday drop ever after the company released earnings guidance that was weaker than expected.
Yelp and Facebook rose as well, although Facebook pared gains after activist short seller Andrew Left said he was short the stock.
LinkedIn shares rocketed 48%.