Microsoft Corp. on Monday announced that the company is acquiring LinkedIn for $ 26.2 Billion and it is the biggest acquisition of the company yet. The deal is to pay $ 196 per share, in cash. LinkedIn’s shares jump 47 percent after the announcement that the giant software tools manufacturer acquires the biggest social networking site for professionals, which globally has above 400 million users. And the Microsoft’s stock was down by 3.2 percent.

According to the terms of acquisition, LinkedIn’s distinct brand, culture and independence will be maintained same. Jeff Weiner will remain the CEO of professional social network and will report to Microsoft CEO Satya Nadella.

“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals,” Nadella said. “Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.” The deal of acquisition has already been approved unanimously by both the boards. As it still needs to get regulatory and other approvals, Microsoft is planning to close it later this year.

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“Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to change the way the world works,” Weiner said. “For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”

Over the recent years Microsoft’s acquisitions has not planned out as they hoped. The software giant’s biggest purchases four years ago under Steve Ballmer, previous CEO of Microsoft are Nokia Corp.’s mobile phone business for $9.5 billion, Skype for $8.5 billion and Yammer for $ 1.2 billion had no great business as expected by the company. While Nadella’s purchase of Minecraft video game, Majang AB in 2014 is a success. So, hope this purchase of LinkedIn social network gives a significant foothold to Microsoft.

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“Today is a re-founding moment for LinkedIn. I see incredible opportunity for our members and customers and look forward to supporting this new and combined business,” said Hoffman in a statement. “I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”

To discuss this transaction, both the companies CEO’s Satya Nadella and Weiner will host a joint conference call with investors at 8:45 a.m. Pacific Time/11:45 a.m. Eastern Time. Microsoft Chief Financial Officer Amy Hood and Microsoft President and Chief Legal Officer Brad Smith will be part of the conference. The call will be available via webcast. Please join if you can.