Microsoft (MSFT) Looking at LinkedIn (LNKD) Takeover?

As LinkedIn (NYSE: LNKD) investors await earnings next week, shares bustled on rumors that tech behemoth Microsoft (NASDAQ: MSFT) could target the company in a takeover. The rumor surfaced Thursday morning in several chat rooms frequented by traders.

A deal, while far from certain, might make perfect sense for both companies. For LinkedIn, the stock has been languishing and analysts view the company at a 'crossroads' with slowing enterprise and online talent solutions growth and rising investment. Meanwhile, Microsoft lacks much of a social media presence and would likely be attracted to LinkedIn's bubbling database of business users.

Microsoft has made some forays into the social enterprise space, but is still considered a laggard. In 2012, Microsoft bought Yammer for $1.2 billion, which was integrated into the productivity suite for business users. There were also recent rumors Microsoft could be interested in workplace instant messaging service Slack. It is feasible to think that with LinkedIn's vast business inter-connections, Microsoft might be able to go after Slack's growth market without buying it. Either way, a deal for LinkedIn would make Microsoft the king of social enterprise players.

"As with all rumors and speculation, we don't comment," said May Chow, LinkedIn's Corporate Communications manager, when asked about the rumors.

Microsoft has not responded at the time of this publication.

While the company's aren't talking, the stock is - shares of LinkedIn are up 2.6% mid-day to $120.33. Microsoft, which reports its own quarterly results after the close, is up 0.5% to $55.84.

You May Also Be Interested In

• Midday movers: Meta, IBM, Caterpillar fall; Chipotle rises
• CEMEX, S.A.B. de C.V. (CX) Tops Q1 EPS by 5c
• Premier Financial Corp. (PFC) PT Lowered to $23 at Keefe, Bruyette & Woods