Tech giant, Microsoft has been making big moves lately. Recently, news came about Microsoft revealing their latest organizer which would compete against Trello. Now, Microsoft has leaped into enterprise and social networking services through the acquisition of LinkedIn. Microsoft announced that it would be acquiring LinkedIn which is the social media platform of choice for professionals and has a user base of 433 million users. Microsoft acquired the company for an astounding sum of $26.2 billion, or $196 per share. The deal has gotten the board approval from both Microsoft and LinkedIn; however it still awaits some regulatory approvals.

In case LinkedIn decides to back out on the deal it would have to pay Microsoft a sum of $725 million as termination fee. This was revealed through Microsoft’s SEC filing which included the details of the merger.

Analysts have commented that acquiring the network for $196 per share is a big hike on its actual closing price from Friday which stood at $131.08. In pre-market trading however, LinkedIn’s stock has spiked up by a stellar 64 percent to reach the $196 share price which Microsoft is paying while Microsoft’s own share price stumbled 4 percent to reach $49.66.

Through this merger LinkedIn will still be keeping its branding and product while getting integrated into Microsoft’s productivity and business processes segment but LinkedIn’s CEO Jeff Weiner will now need to report to Satya Nadella before making any new decisions.

The acquisition will result in mutual benefits to both the firms, with Microsoft finally getting a crucial piece to penetrate into the enterprise sector and compete against services like Salesforce. (a buy that Microsoft initiated but failed)

As of this moment Microsoft’s prime focus is on the software side of things; however LinkedIn will increase Microsoft’s outreach exponentially by providing social networking services and professional content. LinkedIn will bestow Microsoft with the opportunity to sell more of its products while also providing the ability to offer its consumers the ability to use it for seamless collaboration and communication. The possibility of Microsoft integrating its Office Suite on the social networking site can definitely not be excluded and with email services like Outlook at Microsoft’s disposal; the possibilities are bright for the company.