19/08/2016 World Business Report

Linking in to the $26 billion gamble.

Microsoft shareholders get to vote on whether they want to buy

the professional networking site, LinkedIn.

But, really, where is Microsoft going with this?

Because I can tell you its recent takeovers haven't exactly

Find out how cab drivers in Mumbai India are striking back

against the wave of ride sharing apps.

Microsoft shareholders are voting today on whether to approve a $26

billion deal to buy the social network, LinkedIn.

Microsoft is betting heavily that LinkedIn will secure its place

in a world after Windows, but will it work?

Microsoft's best-known brands are Windows, Office and Xbox.

Many of these products are beginning to fade as consumers turn

How can LinkedIn help ensure Microsoft's future survival?

LinkedIn has about 433 million members, with 105 million using it

Crucially, 60% of usage is on mobile devices.

In buying LinkedIn, Microsoft gets a ready-made platform

to run its business on other people's computers in the cloud.

But LinkedIn has made losses for the last two years.

Earlier this year, shares fell more than 40% in one day,

after it unveiled gloomy annual forecasts, but the share price

rebounced following news of the Micosoft deal.

Microsoft has a mixed record on big-money acquisitions.

In 2011 it bought the voice-over-internet business,

It's unclear if that has paid off yet.

Then, in 2013, it bought Nokia's mobile phone unit for $7.2 billion.

Look at that. Look at that dip. That is in one day. 40%. Off a cliff!

It's sort of bounced back to my though. It rebounded when it was

found at Microsoft wanted to buy them.

Microsoft has a mixed record on big-money acquisitions.

In 2011 it bought the voice-over-internet business,

It's unclear if that has paid off yet.

Then, in 2013, it bought Nokia's mobile phone unit for $7.2 billion.

With me, Cyrus Mewawalla, Managing Director at CM Research.

I didn't get that right, did I. LAUGHING. Thank you for coming in. I

am LinkedIn, you are Microsoft. I am LinkedIn. I am struggling to make a

profit, I am struggling to make money out of my current users and

get more. So, write me a cheque. Really? As Microsoft, they have

missed the biggest thing in technology for the last decade, the

mobile phone. What they need to do now is right the next big technology

cycles of. That his artificial intelligence, big data, the cloud,

all that on the Internet. What LinkedIn gives Microsoft is two of

these, social media and collaborative working and social

media technology. You said it. Microsoft is linked to the game and

they are late to it as well. But are they getting an older product so to

speak? I do think so. As fashion and ELA -- Sachin Nade says, LinkedIn is

the leader of networks. They have millions of professionals on the

network to spend a lot of money. If you divided by 400 million users the

money spent on it isn't a light considering they will spend a lot of

money. So Microsoft is just getting a big call list? Not at all. It says

it will let LinkedIn run autonomously but if it links the

datasets of 400 million people then the software and dynamic customer

management software will work better with things like artificial

intelligence is telling me what is... You know, what the data

LinkedIn tells me. Past acquisitions of Microsoft, big money acquisitions

of the new boss, Sachin, sorry, it is early in the morning, I couldn't

remember it, they haven't been successful. They haven't been

successful really. That was under previous management. What I was

talking about. Nokia, Skype. Under Sachin's leadership this is the big

one. OK. So far, Sachin has completely turned around Microsoft.

His strategy is to take it to the Cloud. That is a big risk. Microsoft

is still the third largest tech company after Apple and Alphabet.

The third largest company, because they are all technology one's. OK.

Good to see you. Thank you for coming in and have a good weekend.

It was a pleasure. We will keep across that deal.

In the latest twist to the ongoing corruption scandal surrounding

Malaysia's state fund 1MDB, there's been an arrest in Abu Dhabi.

Let's get the latest from Mariko Oi in our Asia Biz hub in Singapore.

A horrible name, that is. There has been an arrest. Good to see you. I

think for the uninitiated, watching here and around the world, this

Malaysia state fund set up in 2009 has had a lot of controversy around

Ms -- misappropriated spending and the Prime Minister. What is going on

now? As you mentioned, the arrest took place in Abu Dhabi where there

is an ongoing investigation. There are at least one dozen

investigations around the world on IMDB, including here in Singapore

and the United States where authorities are seeking to seize $1

billion in asset. The person that was arrested in Abu Dhabi is

believed to be one of the key figures who might have got some

money from IMDB and used it inappropriately. Pratley,

investigators are trying to determine if he used it to buy the

world's fifth biggest yacht. That arrest took place in the latest

twist as you mentioned. Are should mention that both IMDB and the

Malaysian Prime Minister denied any wrongdoing. I know you will keep

across that and so will we and we will update everyone on the latest.

Thank you. Marika Oi joining us. Now, ride sharing company Uber has

been in the headlines a lot lately. On Thursday, it announced that

people in Pittsburgh will be able to summon, and ride,

in self-driving cars just a few But in India, the battlelines

between traditional taxi services and the tech giant are drawn along

more traditional competitive lines, as Samir Hashmi now

reports from Mumbai. For more than half a century, and

by's taxis have driven the roads of the city. -- Mumbai's. But they have

a problem. Instead of hailing a ride in a traditional cab, most are using

smartphones to make a booking through Uber or one of its Indian

rivals. This man used to earn about $400 a month. But for the last

couple of years he has seen his income almost half. And so drivers

like him are hoping that their fortunes can be reversed with an

application of their own which lets customers book a black and yellow

taxi from this smartphone. TRANSLATION: It is the age of

technology. So even we have to use it to survive in the market.

Hopefully this will let us get all customers. Uber claims that nearly a

third of its drivers in India used to buy their trade in black and

yellow taxis and rickshaws. -- ply. It is also offering financing deals

so workers can buy their vehicle and use them. Black and yellow taxis are

rough too old or uncomfortable to travel in. But this one has nice

damaged seats and the window doesn't work. That is why people are booking

air-conditioned cars. The survival of black and yellow taxis will

depend on embracing technology introduced by rivals but also

standards. BBC News, Mumbai. There you go. Tweet me and I will tweet

you back. I will be back later to take on the news stories of the

world. Goodbye for now. He will join me shortly to look at

the international headlines. The weekend dash for the last Tube

is soon to be a thing of the past.