Which social media platform has over 100 million fans and valued IPO at $3 billion? If you guessed professional social networking website LinkedIn then you’ve guessed right! On May 9, 2011 LinkedIn announced it would offer 7.84 million shares of stock priced at $32 to $35 per share in its initial public offering on the New York Stock Exchange. That makes the IPO valued at $3 billion. After taxes and fees, LinkedIn is expected to raise approximately $146.6 million towards sales and marketing ventures and business operations.
Currently the majority stockholder is LinkedIn Chairman and Co-Founder Reid Hoffman, who owns 21.7 percent of the company. His share of stock is valued at $667.3 million. LinkedIn’s early venture-capital investors, Sequoia Capital, Greylock Partners and Bessemer Venture Partners now collectively own shares valued at $1.22 billion. The Wall Street Journal reported the breakdown of the social media company’s new millionaire executives.
Jeffrey Weiner, CEO:
Shares: 2.3 million
Value: $81.3 million
Steven Sordello, CFO:
Value: $31.8 million
David Henke, SVP operations and engineering:
Value: $11.8 million
Dipchand “Deep” Nishar, SVP products and user experience:
Value: $17.5 million
LinkedIn currently employs over 1,000 people. As of March this year, the social network reached 100 million members. Compared with other social media network values, the highly anticipated Facebook public stock offering predicted for 2012 is estimated to be valued at anywhere between $20 to $80 billion. Yesterday Microsoft announced it will acquire the leading internet communications company, Skype, for $8.5 billion. Skype maintains 170 million connected users and provides real-time communications which will support Microsoft’s devices like Xbox, Kinect and the Windows Phone.