off the table because then they'll say well, i'm glad we found that out before we actually changed rates. >> that delicate dance between markets and the fed. thank you. a busy week. now back to you. >> good monday morning. live at one market, "squawk alley" is live. welcome to "squawk alley." of course, microsoft, linkedin the big story of the day. jon fortt? >> let's get straight to satya

nadella and jeff weiner, a megadeal they announced this morning. $26.2 billion. microsoft looking to buy linkedin. satya, congratulations first on this deal. i know you have some things probably you want to say about this deal off the top. but when you approached linkedin with this deal and why buy versus partner with this company if it's going to be run as its own entity within microsoft? >> thank you, jon. this deal is all about bringing together the world's leading professional cloud and the world's leading professional network. if you think about how people work today, it's split between these two worlds. they are using office on a daily basis, they are using systems like dynamics for their crm and

human capital management and then of course, they are using the professional network. the dream that i have always had is how do we make this come together so that we can serve our customers. this is really about completing that scenario and jeff and i have known each other for awhile. we have been talking about these things together for awhile but to me, this is about the next phase of growth for microsoft. of course we can do things commercially in terms of integration but when i think about the opportunity ahead around productivity, business process and the professional network, it's a tremendous opportunity to expand our ability to grow. >> so again, when exactly about this phase of the conversation begin and tell me what you see as the crown jewel, the core asset that linkedin has that's going to really enable that reinvention of productivity that you have talked so much about.

>> i would say we started in earnest in february talking about some of the deep scenarios. linkedin by itself is a multi-sided market. there's linkedin membership and the linkedin member along with the office 365 usage because these professionals are using office 365 on one side and linkedin on the other side. that's one massive opportunity for us to increase engagement on both. think about the other side of linkedin. it is about higher market sell and learn. that's all business process. that's a huge opportunity for us to integrate and expand into business processes with dynamics. so those are the two sides that are both crown jewels of linkedin but really, it's about putting them together with the crown jewels of microsoft. that is office 365 and our cloud. that's what's sort of super exciting. we started talking about it in february. since then, things have picked up pace. >> jeff, obviously we remember talking to you after that january or february earnings

call and you are selling for where the shares were just before that. how do you feel about price and what does it say about the u-turn that we have made in the shares since that time? >> yeah. for us, it's always been about the realization of our long-term objectives, mission and vision. this combination very meaningfully accelerates our ability to realize those goals. it also takes our scale to a completely different level. you look at microsoft's footprint across over a billion customers and the opportunity to seamlessly integrate our network within the microsoft cloud to create a social fabric, if you will, that can be seamlessly integrated into areas like outlook, calendar, office, windows, skype, dynamics, active directory, for us, that was an incredibly exciting opportunity. >> jeff, you write in your letter to employees about the intensifying competition from large cap tech companies about wanting to be part of one of those instead of going up

against one of those. i'm wondering what benefits you think the scale of microsoft will give you, considering that you will still be a relatively stand-alone company and whether you think other companies faced with the same threat of competition should make the decision you made. >> yeah, you know, it dates back to the third quarter of last year. there was a clear pattern that emerged following the earnings reports from the tech titans, if you will. you look at google, apple, microsoft, amazon and facebook, and in the span of a few days after their earnings reports, the companies increased their market capitalization by somewhere on the order of $100 billion. it used to be the scale was hundreds of millions of users and billions of dollars of market cap. today it's billions of users or customers and hundreds of billions of market cap. the combination of our two companies, having microsoft behind us, enables us to realize the things that we always dreamt of doing. so we are excited about it.

>> jeff, i'm not ignoring you. it's just the way these questions are flowing, i haven't gotten a chance to ask you one yet. back to satya, talk to me about linkedin within the business model for cloud. within azure, how is having linkedin, its data, its traffic, its revenue, going to help the azure business and also, within office 365. you touched a little bit on that, but there are a lot of potential connections with linkedin that could help the 365 experience. from software as a service and platform as a service, business model perspective, talk about what linkedin ideally is going to bring to you. >> absolutely. when i think about microsoft cloud it's really about three clouds, azure, dynamic, office 365. really, linkedin helps us in all fronts. in fact, linkedin by itself is now a new cloud that's going to be part of our microsoft cloud

and the growth will also help us. the scenarios are very straightforward. the richness of the professional graph that linkedin represents and the enterprise graph that we represent which is if you think about what's underneath office 365, underneath dynamics, is the information, people, the relationship with other people, the calendars, the schedule. bring that together with the professional network, skills, job history, other people you are connected to in your profession, then think about even a simple thing. you are walking into a meeting with a bunch of people that you are meeting for the first time, cortana wakes up, your personal digital assistant and tells you about the connection you have with them through your professional network. that's the type much scenarios in office 365. dynamics, social selling in linkedin integrated with dynamics, transform crm. human capital management between dynamics and the talent management systems and solutions that linkedin has. learning which i'm so excited about what we can do between the

learning solutions that linkedin has and all of office 365 in every day usage. plenty of scenarios across the board. >> you can actually think about this marriage of microsoft's corporate graph and linkedin's professional graph as a huge leap forward for the economic graph vision digitally mapping the global economy. you can imagine a day where there's the economic graph is a service. >> that can be the development side. that would be the azure connection. >> that is potentially very interesting. jeff, does this teaming up, this acquisition of linkedin, give you more headroom to invest aggressively in growth in the near term? we saw what happened to the stock earlier this year, your rallying cry to the troops who are always conscious of stock price issues. does a microsoft acquisition take some of that market pressure off the table append aw you to invest without the quarter to quarter concerns?

>> there's no doubt in terms of the timetable there, jon. you know, you always want to remain focused on what it is you are ultimately trying to accomplish. but the reality is there's going to be volatility. there's going to be increasing demand for reaccelerating growth and/or expanding margins. satya and i share a vision for the realization of what it is that we are trying to accomplish and the way in which that creates value for the combined companies. so we are looking forward to continuing to pursue intelligent growth through additional investment. >> on the youtube video that you put out this morning, you said you have been thinking about this for awhile. i would love for you to unpack that a little bit. what's awhile? who spoke to who first? what were the conditions regarding some of this? was it only going to happen if they were able to operate independently? can you talk about some of that? >> you know, we have known each other for awhile now which is multiple years. i think the first time i met jeff was at a microsoft ceo

event we host every year, a couple years ago, and we always talked about this notion of what does it mean to think about the professional network and office in particular, and how these two graphs can come together. but when jeff and i started talking in february about what's that next phase beyond commercial integration, can we truly take what is today a fragmented work environment for professionals and complete the scenarios more tastefully and with better relevance, even take the news feed on linkedin if it was informed with things like what projects are you working on, what is your calendar looking like for the next two weeks. think about how you can bring a.i. to improve the relevance of that feed. that's what excited us. and the mission, one of the things that really excites me about jeff and his leadership is his purpose-driven culture. when i think about our mission it's about empowering people and organizations on the planet to achieve more. there's no better play to do that than to really connect the

world's professionals and make them more productive and successful. that's really what got us going. >> beyond the alignment on purpose, satya had a vision for linkedin to operate as an independent entity, much in the same way as youtube, instagram, that have gone on to extraordinary success and impact on a global basis following their acquisitions. it was that combination of alignment in terms of sense of purpose and structure that we both got really excited about. >> well, it's a big vision and a big task that the two of you have ahead of you. thanks for joining us first on cnbc. jeff weiner of linkedin and satya nadella of microsoft. >> i would love to get your thoughts. we talked a little about the deal before the interview, but now given what they told us, what do you think? >> i think it is a deal that throws down the gauntlet for the rest of the cloud players, including microsoft and google,

which is trying to get its own cloud business off the ground. i think they are going to walk a fine line with trying to keep linkedin independent, which clearly was one of the conditions of getting this deal done, but also doing the kind of integrations that satya is talking about. he wants linkedin to spur growth in all of these different avenues, office 365, dynamics and azure, of microsoft's cloud business. that's going to be a real management and leadership challenge for him. everything we have seen out of him thus far suggests that he's hungry for that kind of a challenge but we will see it play out in realtime over the next 18 months to couple years. >> jon, the m & a history of microsoft is checkered at best. skeptics would point out they are no stranger to multi billion dollar deals followed by multi billion dollar write-downs. i wonder if you think the company has been given a new and

longer leash, if he's being given the benefit of the doubt. >> they have done some deals that have worked. they do seem to have integrated skype into their suite. yammer was a san francisco company, sort of social enterprise software they bought and also integrated. those scale-wise are not what linkedin is. linkedin touches a lot of different members and consumers and of course, you run into that concern, people feel like oh, well, don't ruin what it has going for it. the fact that they are going to keep this independent is also very interesting. i would say yes, microsoft has had some negative headlines of late and how certain things have turned out but you can't forget when it comes to enterprise software, a lot of the things they have purchased have worked out pretty well for them. >> all right. certainly an interesting conversation. we will be talking a little more about it. monster deal this morning. great interview out west. we are also following the latest out of orlando. the deadly nightclub shooting that left 50 dead. we are getting new and

disturbing details on the gunman. we go live to orlando when "squawk alley" returns. ♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...) man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore.

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even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. we want to get to orlando and get the latest on this situation, the gunman opening fire at a nightclub over the weekend leaving 49 victims dead, dozens injured. eamon? >> reporter: so much focus here on omar mateen, who he was, what motivated him, what could have precipitated this horrific attack here in orlando, florida.

now the focus turning a little bit to the family members. his father has been speaking to the press today. we have a little bit of new sound from him. what is striking about this is the different picture you get in hearing about this man from his father and then hearing about him from his ex-wife. they paint almost pictures of two entirely different people. here's what the father had to say a little earlier today. take a listen. >> i don't approve what he did. what he d was completely act of terrorist. i condemn what he did. i wish i did know that what he was doing. if i did catch him, i would have arrested him myself. >> reporter: so on the one hand you have his father saying the family is shocked by this, condemns the activities, condemns the terrorist attack. on the other hand, you had his ex-wife out yesterday talking to the press, explaining that this was a very violent man, that he beat her on occasion and that he often took violent actions in terms of the family, other

family members. so two very distinct pictures of the same man. investigators have a lot to sort out here in orlando, florida. >> speaking of sorting out, eamon, lot of people curious about the timing of the fbi's investigation into any electronic devices that the shooter may or may not have had, and what might be on those drives, what communications they might suggest. do we have any indication when we might start to get that kind of information? >> reporter: well, we don't as of yet. we haven't heard of the discovery of any particular devices but as you remember so well, so much focus in the wake of the san bernardino shootings earlier in the year as to what was on the shooters' iphone. that kind of intelligence will be very valuable here. it's not clear exactly what devices he used or had. investigators were stymied a little bit in getting access to his apartment because of fear that he might have left boobytraps or bombs. they were able ultimately to get into that apartment, presumably by now, i'm assuming here, investigators are going through

anything that he left behind, any resource of any kind, whether it's social media, computers, devices, contacts he had with other people. in fact, the fbi in their press conference earlier today asked anyone who knew this shooter to call them and give them more of a full picture of who he was and why he did all this. >> eamon, of course we remember after the san bernardino shooting, how after the suspects' apartment was vacated by the fbi, it was basically a free-for-all with the media there. i'm wondering how closely the shooter's home in southern florida is being monitored as a crime scene at this point and whether you know when there will be any more forensic information from the fbi from that site. >> reporter: well, we don't know. i would imagine we will hear a little more from the president. we are expecting to hear from the president of the united states very shortly. we are also expecting to hear from the fbi in the noon hour. so perhaps some more information about to come out here from there. but that scene in san bernardino

was so strange to those of us who covered this over the years. typically those crime scenes are completely locked down and secured but there, the scene was turned back over to the landlord, who opened it up for the media to have full access to it. the fbi afterward and law enforcement afterward said you know what, once we are done with it, once we are clear from that scene, we do turn it over to the person who owns it and they have control of that site. so they defended their actions there. we aren't seeing anything like that here just yet. but clearly, this investigation is just getting started as they try to piece together all of the myriad details here that might paint a picture of why this awful tragedy happened. >> speaking of the tragedy itself, eamon, the city of orlando whose mayor has already called this the darkest day in the city's history, is about to undergo the process of aligning all of these memorials, funerals, just a series of very tough days ahead for the city of orlando. >> reporter: carl, i can't even

begin to describe the grief that's on the scene here in orlando as people really struggle with the notification of the family. i was at the hotel yesterday that was the rallying point for the family members who feared they might have lost someone. as they were notifying those families that their loved ones were indeed dead, and i have just never seen anything as heart-breaking in my entire life. you had hundreds of people there in tears, in shock, screaming, family members clutching each other in desperation, wishing this news was not the news they were getting. you had all the people there to help, members of the clergy of a number of different faiths, you had volunteer organizations there just passing out water and food, basic things like that. you had law enforcement there with counselors trying to help, police, fire, everyone there to try to help these families who are in such desperate need in that moment and there was just nothing those helpers could really do to change the

fundamental terrible reality that those families were dealing with yesterday. obviously that process will go on today and tomorrow and on and on and on in the lives of those families. >> of course, many of those medical teams working around the clock yesterday evening. orlando regional medical center completed 50 surgeries in just 14 hours and most of those victims were in critical condition. have we received any news about the status of many of those victims who were lucky enough to have survived? >> reporter: we don't know. we are actually here at orlando regional medical center right now. this is a tier one trauma facility so this is the facility that had all the capability that you would want to have in place if you had to deal with this kind of tragedy, as they did saturday night into sunday morning. so the resources were right here. we are standing maybe a couple of blocks from the pulse nightclub right here. so the distance from where the

attack happened to this hospital facility was very very short relative to what it could have been. so you would imagine that some lives were saved there just in the speed that they were able to get those people to very very world class medical attention. but we have to wait and see what the outcomes are of all those surgeries that were taking place here. obviously, the families had a very, very tough night again last night as they waited through the results of all the surgeries and all the medical care. >> the video, the pictures of people lining up around the block to donate blood, as john oliver pointed out, just shows the incredible generosity and resilience of the city. we are getting word from reuters, the president, we are expecting a statement in a few moments as he was briefed by the fbi director, but the president, reuters says, is saying it appears the shooting was according to reuters home-grown extremism. we will get that statement in a moment. thank you, eamon javers. back after a short break.

markets in europe are going to close in about three minutes or so, in europe and across the uk. stocks falling sharply on the uncertainty surrounding next week's brexit vote as well as concerns about slowing global growth. banks among the biggest losers led by the financials in italy. britain's lloyd's joining the ranks of the losers. the uk pound rebounding from its lows of the day. speculation a new icm poll for british newspaper the guardian will show greater support for staying in the eu. you also had the ten-year bond years on the periphery, spain and italy posting their biggest one-day jump in more than two months. not saying a lot given where we have been the last couple weeks. it comes on the heels of some of the other polls that show the leave camp with a ten-point gain lead, but it's still early. turnout, you are guessing the last few minutes, some concerts, rain, all the things we talk

about in this country will be in play there, too. >> the swing voter is of utmost importance when this vote takes place. of course, sterling being the leading indicator. that too has been jostling back and forth. interesting as we show some bond yields. spain, we were just showing, 1.5%. u.s. treasury, ten-year, 1.6% but there are $10 trillion worth of global bonds trading in negative territory. >> some more than others. >> what a time to be alive. all right. coming up after the break, more on that deal of the morning. microsoft buying linkedin. just over $26 billion. linkedin shares on pace for the best day since the day the company went public. up 47%. elevation partners will weigh in. the dow had been eking out some gains this morning, now lower by about four points. we will get more on that when "squawk alley" returns. we're good. okay...

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in a moment we will hear from the president on tape, having just been briefed by the fbi director james comey about the shooting in orlando over the weekend. we expect him to say first this is an attack on all americans and that the administration and fbi are looking at all motivations of the killer. probably most important is there's no clear evidence the president says that the attack was directed by extremists. not talking necessarily about influence but an actual directive from the islamic state. >> which is an important distinction as we start to think

about the response that washington and the presidential field has had to this attack, of course. a huge tragedy in our country, the largest mass shooting in american history. we are learning more about the gunman, omar mateen. pete williams reporting he took two trips to saudi arabia in 2011, 2012 federal officials trying to understand what he did while he was there and the purpose of those two trips. >> the president will talk about obviously how it affects gun policy in this country. eamon javers and the lgbt connection which obviously is a key part of the story, but it will be interesting if we understand correctly to hear the president address that directly. >> reporter: -- talked about the question of whether or not there was any direct communication with isis or anybody directed this attack. that is part of the evil genius we are seeing now from isis. their ability to motivate people continents away from where they

are with its online propaganda, to take action in place, in the countries where they are. that's what makes isis so dangerous and tricky to deal with for intelligence and law enforcement officials here inside this country. when you listen to president obama, listen as he grapples with the challenge that this presents to u.s. intelligence and law enforcement in terms of stopping this and responding to it and also, bringing in these intensely political debates about gun control and also exactly how we are responding militarily to isis overseas. a lot of politics in this the president will navigate as well on top of the national tragedy we have seen and the pure heartbreak and devastation here in orlando. >> we know that you won't go far as we await that tape from the president and the director of the fbi. we will bring that to you. meantime, the markets have gone deeper into negative territory. we will be talking about what is moving in the markets as well as the deal of the day. microsoft buying linkedin, on the other side of this break.

welcome back to "squawk alley." the big news of the morning, microsoft announcing it will acquire linkedin. jeff weiner will stay at linkedin ceo. take a listen. we are going to hear the tape later on. meantime let's talk to roger mcnamee, co-founder of elevation partners. good morning to you. >> how are you, carl? >> i'm good. what a day in tech. biggest internet software deal

of all time. i just got to know how it's playing out there. >> i can tell you this. i think once again, frank has delivered a miracle on behalf of the shareholders of a selling company. i think it's entirely possible that absent this deal, linkedin would never have seen this price again and so you know, it's truly a fantastic outcome for them. i think for microsoft it's going to be hard to get the value out of this that i think they planned to get but we'll see. microsoft's a very big, very capable company and i suppose there is some way they can get a reasonable value. i'm really impressed that the microsoft shareholders are as excited about this deal as they are. i would have anticipated the stock being down more. >> i want to get more into your skepticism it sounds like on that deal but i think -- >> it's really simple. big deals don't work. you know, these things are sold, not bought, and from microsoft's

point of view they have to pay attention to the fact that linkedin has never been a particularly profitable company, and their focus primarily on job boards and hiring and all of that has shifted the value proposition in a way that i do think limits their ability to integrate it into microsoft's broader enterprise suite which is not to say they can't do it. it's just going to take real work and quite a lot of time. >> jeff weiner's point was that at a certain size, you just can't afford to compete against the new horsemen anymore. he said it used to be that scale was hundreds of millions of users, billions of dollars in market cap. now it's billions of users and hundreds of billions of dollars in market cap. what sort of rock and a hard place does that put certain companies in? >> well, i think it suggests that jeff weiner was absolutely correct to sell the company for cash to microsoft. i think brilliant move on their part. the interesting question when you reverse the thing and look at it from microsoft's point of

view is how exactly are they going to leverage the extreme value that is inside linkedin and make that work for microsoft. i don't think linkedin customers will feel more fondly about microsoft outlook or exchange or office or any of the other apps. i think it's really about can they use that network to build other relationships and clearly that potential is there. but i think the price point is going to put a lot of pressure on microsoft to get value. >> on that note, this is nadella and weiner talking to us a few moments ago. >> i would say we started in earnest in february talking about some of the deep scenarios. linkedin by itself is a multi-sided market. there is linkedin membership and that linkedin member along with the office 365 usage, because these professionals are using office 365 on one side and linkedin on the other side. that's one massive opportunity for us to increase engagement on both.

but think about the other side of linkedin. it is about higher market sell and learn. that is all business process. that's a huge opportunity for us to integrate and expand into business processes with dynamics so those are the two sides that are both crown jewels of linkedin but really, it's about putting them together with the crown jewels of microsoft. that is office 365 and our cloud. and that's what's sort of super exciting. and we started talking about it in february and since then, things have picked up pace. >> obviously, we remember talking to you after that january or february earnings call and you are selling for where the shares were just before that. how do you feel about price and what does it say about the u-turn we have made in the shares since that time? >> yeah. for us, it's always been about the realization of our long-term objectives, mission and vision. this combination very meaningfully accelerates our ability to realize those goals. it also takes our scale to a completely different level.

you look at microsoft's footprint across over a billion customers and the opportunity to seamlessly integrate our network within the microsoft cloud to create a social fabric, if you will, that can be seamlessly integrated into areas like outlook, calendar, office, windows, skype, dynamics, active directory, for us, that was an incredibly exciting opportunity. >> roger, given that microsoft made its initial approach in february when linkedin stock was at its low, i believe at one point trading at or below around $100 per share, is this going to be a catalyst for silicon valley, for other startups or young public companies in this space or is it going to be a wet blanket? does this make people feel better about their prospects or worse? >> well, i think the key change that we have got is that the industry has just come off this

monster product cycle in mobile, that we finished the adoption cycle for smartphones and are now in the adaptation cycle where companies are essentially recognizing that every customer they touch has a smartphone and they need to adjust their technology strategy to take that into effect. that change has caused growth to essentially stop everywhere. acquisitions are, you know, that's the way people try to convince themselves that they can grow again, and historically, the track record's terrible but i expect to see lots of other deals. just last week, you had sales force making a big acquisition. now you have microsoft making a big acquisition. i don't think we're anywhere near done. the reason we're not done is buyers all need to find some way to change the subject away from the lower rates of growth they are experiencing. >> they also need to find an acquisition target that's willing to sell at a decent price with valuations where they are. worth noting, linkedin might be up 50% today but it's 30% below

the stock's high in just the last 52 weeks. >> but i think objectively, this is a magnificent price for linkedin. i think one can argue persuasively that the peak price was insane. again, if you are an owner of internet stocks today, this was a really good piece of news. as an investor, if you are an investor in the buyers of these companies on balance, the deals are going to be disappointing. no reason to believe linkedin cannot work. i just think it will take a long time and it may not produce the earnings leverage to microsoft that the shareholders i think would deserve for a $26 million -- billion dollar deal. >> really good insight. we always lean on you for that. roger mcnamee joining us. jon? believe it or not, i didn't fly out here to just be closer to linkedin. also happening today, apple's developer conference.

wwdc. of course, microsoft has been stealing the spotlight this morning, but apple also expected to talk about the cloud at wwdc and a lot of the issues connected to this microsoft/linkedin deal. joining us is walt mosberg, editor at large at re/code and executive editor at the verge. he's at that event also in san francisco. nice to have you. >> great to be here, jon. >> so i see a common thread between the microsoft/linkedin acquisition and what we expect to hear out of wwdc. that is, megaplayers in tech who want more data from the cloud that indicates what people want to do, what they are willing to buy. for apple to be a bigger player in that theme, what do we need to hear from them today? >> well, i think you have got it right, jon. i expect there will obviously be

a bunch of things here but i expect the headline here to be a real big ramp-up in what siri can do, what third party developers can do with it, and just some demos where they will try to show that they're in the game 100% with google and facebook and microsoft and others. >> now, you said in the past, in a past column, that because of apple's stance on privacy in the cloud, because they are not going to share information, monetize the data they are getting through the cloud as players like facebook and google are, even amazon to some extent, that they are at an inherent disadvantage. does opening up siri to third party somehow cover for that, or mitigate that, or do you think there's still, no matter what they say about opening up siri, going to be at a disadvantage? >> well, i'm going -- it's one

of the things that i'm going to be most interested in listening very hard for at this event and in some follow-up interviews that i hope to have, which is how are they going to reconcile those positions. there certainly are a number of creative things they can do with opt-ins or a consumer might say okay, i'm okay with you using certain information if it gets me this kind of benefit that a.i. is promising somewhere down the line. there's a number of other ways. but you're right, i think on the face of it, apple's very principled stand which i support and have supported about protecting people's privacy actually puts them conceivably at a disadvantage here. so this is the moment where they explain that, i hope. >> one of the things i'm wondering is do we hear more from apple about apple

developing apps that actually work on android? for me, a watershed moment for apple was when they decided for itunes to work on windows. it's opened up the possibilities for the ipod, made it more than just a mac ecosystem add-on. made it a global phenomenon. of course they have apple music now that runs on android as well. they have done a couple other smaller things. do you see other opportunities for them to build apps on android that perhaps pull users into the apple ecosystem that aren't in it now? >> i do. i think the big one is i-message. when people talk about apple, they often don't mention i-message. i don't know the numbers but it's a very large messaging system that happens to be limited to apple devices. it's on all their devices, not just on the phones, but you and i both know that messaging systems like that, what's app,

facebook messenger and others, are huge platforms now which not only allow you to exchange messages, phone calls and videos but do payments and of course, apple has a payment system. i would not be at all surprised to hear them say we are bringing that to android. instead of just keeping it as something which makes you want to buy an iphone. >> last time we heard from tim cook on stage, he opened up with a message about apple's position toward the u.s. government when it comes to things like privacy in the wake of terror attacks. of course, tragically, we just had another in orlando. is there anything that we can expect to hear from apple in this address which is about software, it's about security, it's about many of those core issues on this topic, especially in wake of the orlando tragedy?

is there anything we expect to hear from apple on those subjects today? >> well, you know, tim cook and apple have been outspoken in defense of the gay rights and some other social and political issues, so you can't rule it out. i'm sure they have debated it. i have absolutely no idea whether they will do it or not. but i get where you're going, your instinct on this. both you and i were on social media a good deal yesterday talking about this. i'm sure it was on the minds of everyone at apple as well. anything's possible. >> yes. we value your insights. can't wait to see what will come out of wwdc. thanks for joining us. walt mossberg. meanwhile, the dow losses are accelerating despite the fact that oil has stabilized. part of that is an impending poll on the brexit that could

come out momentarily. the two biggest laggards on the dow, apple followed by microsoft. "squawk alley" will be right back.

coming up on a special edition of "the halftime report" life from one market in san francisco, we will be all over the blockbuster day in tech. microsoft buying linkedin. the apple worldwide developers conference. the very latest on both of those events coming up.

former apple chief evangelist, guy kawasaki, will be here. if that weren't enough, andrew left will join us as well on his facebook short, his linkedin long and who knows what else. see you in about ten minutes from one market in san francisco. >> good day to be there. thanks a lot. as scott says, we are just about an hour away from the apple event. that's when it kicks off. josh lipton is in front of the venue and can raise the curtain for us. we always say the stock never does too well on developers days and in fact, it is down today. what can we expect? >> reporter: well, i can tell you there's a lot of excitement here for sure. i actually arrived when it was still dark out, and there were still already developers lining up here. you will see thousands of developers from all around the world at apple's big software show. remember, apple does have four different operating systems, right, so mobile, mac, watch, tv, so there should be a lot of news today for developers. as well, of course, as for apple

consumers and investors. expectation, you heard walt mosberg just talk about this, is that siri just take center stage. the war of virtual assistants, when i talk to developers, tell me that amazon's alexa is really very good at voice recognition. they say google is really good at voice translation and they will say apple's advantage is really that global community of dedicated developers, so is apple now going to make siri available for developers to start integrating into their apps. also last year at this show, remember apple music launched to a lot of fanfare, lot of excitement. the service boasts some 13 million paying subscribers. reports do suggest that service is going to get a makeover today, a redesign interface, expanded radio options, but the music streaming industry is an increasingly crowded one so what is apple going to show us today that really shows how it's different from the competition. of course, today's show so important because apple doesn't want to be thought of as just a

hardware powerhouse. they want to say they are also a software and services play, especially with that iphone franchise under some pressure as of late. as you mentioned, this show about to kick off in one hour. i will bring you guys headlines as they come. back to you. >> josh, it's the middle of june. you are in a jacket. is that just classic san francisco weather at work or is this an outlier temperature-wise? >> reporter: yeah, no, i got jackets going. mosberg told me, he was just in boston and it was warmer than san francisco. this is a city by the bay in june. >> summer is september, october for san francisco. >> we can't wait for more. josh lipton outside wwdc. jon? >> i can promise you, it is cold out there. i was out there just a few minutes ago. we will have more on the markets when "squawk alley" returns. i asked my dentist if an electric toothbrush was

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write the rules here. we are going to do this differently. you will have your independence. we have this shared sense of alignment so let's dream big and think about what's possible. >> that's the youtube video put out earlier this morning. we talked to them a little later, kayla, and it sounds like february is when things started to take off. interesting to hear. >> he makes it sound like they discussed a number of options including partnering not necessarily an outright purchase. interest thing that this is the deal we got. ft saying microsoft should scrap the promise of autonomy. >> let's get to bob pisani with a market update. >> we are about where we started. germany just closed off the lows, down 1.8%. we are essentially at the lows for the day. some sells tickets came in right at the end. oil was supportive of our markets throughout the morning. i think that was a big help. you see oil selling off in the last half hour or so. that puts some pressure on energy stocks. if you look at the energy, you see them moving to the down side. that helped as well -- hurt as well.

finally, tech stocks just had a tough time all throughout the morning, sitting at the lows. >> thank you very much. busy morning for us here. the coverage of wwdc and microsoft/linkedin continues. let's get to scott wapner and "the half." thanks so much. welcome to "the halftime report." i'm scott wapner. we are live today from cnbc's bureau at one market here in san francisco. what a day to be here with the blockbuster news in tech today. microsoft buying linkedin for $26 billion or $196 a share. we will have plenty on that deal coming up in just a moment. oh, by the way, it's also the day of apple's worldwide developers conference. we will walk you right up to that event which begins at 1:00 p.m. eastern, about an hour's time from now. with me, jon and pete