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The Microsoft LinkedIn acquisition seems to have positively signaled investor confidence, in spite of calls that the sky is falling. Whatever odds there were for a "bubble burst" are probably lessened by this purchase.

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Maybe, or it's a sign that companies are recognizing they are richly valued and want to take advantage of that while it lasts.

MSFT has a P/E of 38, for example

If I had to guess, I think we'll see a lot of M&A activity at some very high prices from other companies that are richly valued.

That's true. Even during the dotcom bubble, internet incumbents used their high valuations to leverage questionable acquisitions. Yahoo's purchase of Broadcast.com for over $5B being the most notable example.

I doubt that it has any impact.

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