Here’s Why Microsoft, LinkedIn and Three Other Stocks Are Making Headlines on Monday

After opening deep in the red, the three indexes are trying to make a comeback of sorts. The Dow Jones is down just 25 points, while the NASDAQ is off by 0.25%. The S&P 500 is only 0.13% in the red. Among the stocks  that are making headlines are Microsoft Corporation (NASDAQ:MSFT), LinkedIn Corp (NYSE:LNKD), Tribune Media Co (NYSE:TRCO), DISH Network Corp (NASDAQ:DISH), and Yahoo! Inc. (NASDAQ:YHOO). Let’s find out why these stocks are trending and see what smart money investors from our database think about these stocks.

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Microsoft Makes a Bold Aquistion

Two software/internet companies are trending today after Microsoft Corporation (NASDAQ:MSFT) announced it is buying LinkedIn Corp (NYSE:LNKD) for $26.2 billion, or $196 per share.  Shares of Microsoft Corporation (NASDAQ:MSFT) have inched down by 3%, while shares of LinkedIn Corp (NYSE:LNKD) have surged by 47% following the news. Microsoft will fund the acquisition by issuing debt and intends to finish its around $40 billion buyback program by the end of 2016. Given how little LinkedIn makes in profits versus Microsoft, Microsoft does not expect its EPS to change much in fiscal year 2017 or 2018. If LinkedIn continues to evolve and innovate, the acquisition could be a long-term win for Microsoft. Out of the 766 funds in our database, 144 were long Microsoft and 41 owned LinkedIn at the end of March.

On the next page, we examine Tribune Media Co, DISH Network Corp, and Yahoo! Inc.
Dispute Between Dish and Tribune Media 

A dispute has broken out between Tribune Media Co (NYSE:TRCO) and DISH Network Corp (NASDAQ:DISH) after the latter blacked out 42 of the former’s stations and WGN America after the two failed to come to terms over a distribution deal. DISH shares are off by 1.1%, while Tribune Media Co (NYSE:TRCO) shares are up 0.5% on the news. Due to the blackout, around 5 million DISH satellite subscribers in 33 different markets and Washington D.C. won’t be able to watch local TV stations run by Tribune. Tribune wants more fees, while Dish Network thinks Tribune’s request for a price increase is unreasonable. A total of 24 funds from our database owned shares of Tribune, while 51 were long Dish at the end of the first quarter.

Yahoo! Bidding Continues

Yahoo! Inc. (NASDAQ:YHOO) is in the news after Bloomberg reported that Quicken Loans founder and Cleveland Cavaliers owner Dan Gilbert has bid around $5 billion for Yahoo’s core assets including its patents and real estate. Gilbert, whose bid is backed by Warren Buffett of Berkshire Hathaway, is confident in his probability of winning. He believes Yahoo can be a good investment given the right management. After another round of proposals, a winning bidder for Yahoo could be known as early as next month. Separately, AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) have also put in competitive bids. AT&T is purportedly to offer around $5 billion and Verizon’s bid is valued at some $3.5 billion for the core assets excluding patents and real estate. Among the funds we track, 97 funds owned $7.92 billion worth of Yahoo! Inc. (NASDAQ:YHOO) shares, having amassed 22.70% of the outstanding stock at the end of March, versus 84 funds and $5.92 billion, respectively, a quarter earlier. Shares of Yahoo have inched down since the opening bell.

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