Earlier today, Reuters reported that LinkedIn (NYSE: LNKD) was interested in acquiring Monster Worldwide (NYSE: MWW). Shares of Monster Worldwide spiked strongly higher after the news broke, with shares of Monster Worldwide moving up almost 15% nearly immediately. The acquisition might make sense for LinkedIn, as Monster Worldwide operates in a similar space--online job search. Still will the acquisition actually happen? It may not be likely. A source familiar with the matter told Benzinga that LinkedIn is not interested in acquiring Monster Worldwide. Benzinga reached out to Aaron Kessler, an analyst at Raymond James who covers LinkedIn. Kessler was not able to offer insight about whether or not the acquisition would happen, but did not think LinkedIn needed to make the move.
Yeah, this thing is going to fall back hard on Monday. Once the dust has settled and folks realize that this was just a bad rumor, it will correct back. The other thing that MWW has going against it is that it has some covariance with $FB. Research has shown that stocks with a relative covariance to other stocks with an IPO generally drop during the IPO period since money is moving from investing in one stock to a similar stock. This "rumor" was a perfect opportunity for the institutions to get a nice pop before moving money. I expect you all to begin your flaming, but I could care less. I've got a decent wager that we pull back next week. Good luck.