Global tech giant Microsoft is to buy professional networking site LinkedIn for $26.2bn (£18.3bn) – $196 per share – in a deal thought to be completed by the end of December.

Shares in LinkedIn surged 47.8% to $193 on the news, while Microsoft’s share price initially fell by 4.1% to just over $49.

According to a LinkedIn press release, LinkedIn will retain its distinct brand, culture and independence. Jeff Weiner will remain chief executive of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.

Weiner said in the statement: "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 also change the way the world works.

"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."

In an initial reaction to the news, Jacques de la Bouillerie, managing director of Coople, one of Europe's largest on-demand job marketplaces, believes the acquisition highlights a growing trend in tech companies moving into the job market, showing a market that is ripe for innovation and change.

“Microsoft’s acquisition of LinkedIn today gives it access to a network of over 433m professionals, with 20m users based in the UK alone. The timing is particularly interesting, coming just a year since LinkedIn acquired online learning company Lynda. 

“With this purchase, Microsoft will want to become the face of the modern workplace, from offering office software tools, to training and now recruitment.”

• For more recruitment industry reaction to this news, see recruiter.co.uk tomorrow [14 June].