What: LinkedIn (NYSE:LNKD.DL) stock opened up Monday morning. Shares jumped as much as 48.3%, driven by a Monday morning announcement that Microsoft (NASDAQ:MSFT) reached a deal to acquire the social network for professionals for $26.2 billion. Shares are up about 47% as of 1:08 p.m. EDT.

LinkedIn CEO on left; Microsoft CEO in the middle. Image source: LinkedIn.

So what: The stock's move reflects the premium Microsoft is paying per share over Friday's closing stock price for LinkedIn. The $196 per share Microsoft agreed to pay LinkedIn is 50% higher than where shares were trading before the announcement.

LinkedIn shared some details in a press release about the deal, including Microsoft's plans to retain LinkedIn's brand, company culture, and its independence. Further, LinkedIn CEO Jeff Weiner will remain at the helm, reporting to Microsoft CEO Satya Nadella.

The acquisition, if it goes through, would represent Microsoft's largest ever.

Now what: The two companies believe the acquisition will create new synergies and opportunities, including accelerating the growth of LinkedIn, Microsoft Office 365, and Dynamics.

The deal, which has been "unanimously approved" by the boards of both companies, is expected to close by the end of 2016. Investors should keep in mind that problems could still arise which prevent the transaction from going through, as it's still "subject to approval by LinkedIn's shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions."

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