LinkedIn’s IPO Will Be $3 Billion Plus

Posted by at 11:48 am on May 9, 2011

LinkedIn released the pricing details of its eagerly awaited IPO this morning. The company intends to issue 7.8 million shares under the proposed ticker  at a range of $32 to $35. At the midpoint, the valuation would be $3.3 billion.

Most likely opening price will be 30% to 40% higher when the shares hit the market, which will probably be in the next week or so.

Founded in 2003, LinkedIn is a kind of Rolodex for the 21st century, allowing professionals to network over the Internet without putting up with those goofy family photos and embarrassing comments from ex-girlfriends that can abound on other sites like Facebook and Twitter. LinkedIn is meant to be for professionals first, an important distinction that makes it unique.

User and Revenue

LinkedIn’s growth rate has been consistently strong with more than 100 million members.

LinkedIn has created a variety of revenue streams, which include advertising, hiring solutions and premium subscriptions. The professional focus of the network allows it to offer businesses offerings for a fee as opposed to trying to win over clicks or dollars from a consumer-oriented audience.¬†In fact, the company doubled last year’s revenue to $243 million, with net income coming to $15.3 million, thanks to professional services.

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