Microsoft announced shortly ago that it's buying LinkedIn in a deal valued at $26.2 billion.
If the deal will take place it will make it one the biggest tech mergers of all time.
Microsoft will pay $196 per share, that's 50% more than LinkedIn stock's closing price at the end of the day on Friday.
Following the announcement, LinkedIn stock rose to near that purchase price, while shares of Microsoft slipped 4%.
Microsoft, which dominates the global market for computer systems, want to buy LinkedIn, the main social network for professionals.
LinkedIn had a long run as the best-performing social network in the stock market. But over the past six months, shares have started to sink as Facebook has soared.
But it's still a big business. LinkedIn had $3 billion in revenue last year, up 35% from the year before. It has 433 million members worldwide.
This year its shares plunged 42% so far, before the deal was announced. The big warning sign came in February when the company warned of disappointing revenue and profits ahead.
The LinkedIn brand will continue after the deal is closed later this year, the companies said. Jeff Weiner will remain CEO of LinkedIn, reporting 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."
Microsoft values LinkedIn more than it does Yahoo, which is also looking for bids pricing the company's core business at less than $10 billion.
The jump in LinkedIn shares early Monday lifted his net worth by more than $900 million.
