The lone major regulator that analysts fear could derail the Microsoft-LinkedIn deal is the European Union.
Case in point, regulators in the U.S., Canada, and Brazil have all signed-off on the deal. In terms of significant events remaining, it appears gaining regulatory approval remains the lone major factor that could upend the deal, and even this risk seems relatively diminutive this far along in the process. Check yet another significant obstacle off the list. LinkedIn shareholders already voted in an overwhelming majority to accept the deal in August, so gaining the necessary approval from investors - a major potential hurdle - is no longer a factor.
This far along in the process, few major obstacles exist that could sink Microsoft's LinkedIn buyout. Microsoft's LinkedIn deal still needs 1 key regulator's approval However, this uncertainty exists for a far lesser degree in the case of LinkedIn and Microsoft. That's certainly the case in most merger scenarios. As the thinking goes, unknown factors could arise and sink the merger, probably resulting in a loss of some or all of the 49.5% premium Microsoft offered as an incentive to close the acquisition. So why does this gap between stock price and merger price exist?