LinkedIn Goes Public
Business social networking website LinkedIn filed on the 27th of January 2011 to go public. The company filed its S-1 (typically the first time that a private company’s financials become public) hoping to raise US$175 million.
When asked “Why IPO?”, the CEO answered, in his own words: “For us, first and foremost, it’s about our mission, which is to connect the world’s professionals,” Weiner said in an interview with Bloomberg Television. “An IPO, being public, raising money, that’s really a tactic that helps us ultimately achieve that long term objective.”
SharesPost, an exchange that matches buyers and sellers of shares in private companies, stated that recent LinkedIn contracts have come at an implied valuation of $2.2 billion. In addition, post of valuation, hedge fund Tiger Global Management reportedly paid US$20 million for a stake in LinkedIn that valued the company at more than $2 billion, Bloomberg News reported.
Who is cashing in?
- Reid Hoffman, Founder: 19,066,032 shares, 21.4% ownership
- Sequoia Capital: 16,840,309 shares, 18.9% ownership
- Greylock Partners: 14,047,978 shares, 15.8% ownership
- Bessemer Venture Partners: 4,578,253 shares, 5.1% ownership
- Jeffrey Weiner, CEO: 3,844,512 shares, 4.1% ownership
- Steven Sordello, CFO: 1,007,327 shares, 1.1% ownership
- Dipchand “Deep” Nishar, VP Product & User Experience: 970,000 shares, 1.1% ownership
Who are the underwriters?
- Morgan Stanley
- Bank of America Merrill Lynch
- J.P. Morgan Chase
- Allen & Co.