LinkedIn peaks after secondary auction
The importance of LinkedIn as a social networking tool has been highlighted in a secondary exchange auction this week, according to Bloomberg.
LinkedIn valued at $3bn in secondary exchange auction
Friday, January 21 2010 by Craig Nicholson
LinkedIn’s importance among internet marketing consultants could have peaked this week after a secondary exchange auction valued the company at around $3 billion (£1.9 billion).
The financial worth of the professionally-orientated social networking site was calculated after shares were being sold in an auction by secondary exchange SharesPost for $30 (£19) each, Bloomberg confirmed today (January 21st).
SharesPost contacted LinkedIn shareholders to find out more about their interest, though two sources speaking to Bloomberg refused to be identified given the private nature of the auction. Participants in the sale of shares – who will likely have a major managed emarketing interest in the organisation – will be informed of the results on January 28th.
LinkedIn investors, through this sale, will have a chance to divest shares before the company files for any initial public offering, while Morgan Stanley & JP Morgan Chase have been appointed as advisers regarding its prospectus for this quarter.
The website, like many of its social networking rivals, is based in California – Mountain View, to be precise. It now employs over 1,000 people, who in turn manage 90 million users in over 200 countries who have found the resource through the company’s keen website promotion.
Much of LinkedIn’s primary pulling power is in its ability to provide specifically-tailored job searches, while employers can also partner with the firm to recruit employees and find industry experts.
LinkedIn’s primary source of income is through users, who pay to claim more rights and benefits from the website. However, it is also benefits from managed pay per click, as it maintains a number of advertising partners.
It now has 97.1 million shares, according to SharesPost. A minimum of 95,500 shares will be sold in the latest bid and buyers need to invest a minimum of $100,000 (£63,000) to be eligible.
LinkedIn was formed in 2003 and is available in English, French, German, Italian, Portuguese, and Spanish.
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