Are You LinkedIn to Potentially Cashing in on Social Media?
Posted by Dave Thomas on May 9, 2011 in Business News, Internet Marketing, Social Networking [ 2 Comments ]
As many businesses try to get a firmer grasp on how social media can assist them to grow, the recent news of Mountain View, California-based LinkedIn’s reported worth and transition from private to public company makes one stop and think if they should be coming up with the next great social media project.
Reports from a recent initial public offering (IPO) filing with the SEC (Securities and Exchange Commission) indicate that the professional-networking site is worth close to $3 billion, with the company planning to offer 7.84 million shares priced in the area of $32 to $35 each. LinkedIn is slated to trade on the New York Stock Exchange with the symbol “LNKD.”
Financial experts note the sale allows LinkedIn investors to divest shares prior to the company filing for an IPO. According to online marketing site SharesPost, LinkedIn has 97.1 million shares outstanding. In order for buyers to be eligible, they are required to invest a minimum $100,000, with trading projected to start around May 19.
Earlier this year, LinkedIn reported it would be filing for an IPO, perhaps the first of several well-known social media sites to do so. At the time of the announcement, the business was estimated to be worth about $2.51 billion. According to company numbers, net revenue grew $49.2 million over a three month period ending March 31, 2011.
Analysts note that LinkedIn, which reportedly attains a new member every second, is the fourth-largest business by market value on the SharesPost index. Facebook is the largest with a $76 billion valuation, with Zynga Game Network and Twitter second and third, respectively.
LinkedIn, which reports it has more than 1,000 employees, sports more than 100 million members in some 200 countries and territories.
The company’s move from private to public company also means a secure financial future for its top employees, according to The Wall Street Journal.
For example, LinkedIn co-founder Reid Hoffman’s stock value is reportedly worth some $667.3 million, with Hoffman controlling 21.7 percent of the company’s voting power following the IPO. Reports are Hoffman and other top LinkedIn individuals will only sell a small portion of their stock with the IPO.
LinkedIn is used by business professionals to search for employment, screen and hire new talent and locate industry experts. Members are able to build and maintain profiles for free; the company makes money via advertisements, subscriptions and providing recruitment solutions for human resource managers.
With the LinkedIn IPO, eyes will likely to turn to Facebook and other social media venues to see if they will follow suit.
In the meantime, have you thought of the next great social media venture that could land you and others a big payday?
Keep in mind, for every LinkedIn or Facebook success story, dozens of others never gain traction.
Social media is only going to continue to grow; what role will u have in it?