A major state-change ahead for LinkedIn
As a private company, LinkedIn’s financial information is not public. But shares of the company already trade on secondary markets like SharesPost, where LinkedIn has an implied valuation of about $2.2 billion — a conservative figure, this person said. (The Securities and Exchange Commission has begun inquiries into the trading of social networks like LinkedIn and Facebook in secondary markets, DealBook first reported last month.)
The size of the offering is likely to be a relatively small percentage of LinkedIn’s overall valuation, largely because company insiders like its founder, Reid Hoffman, are not expected to sell large holdings. Proceeds from the offering would likely be used to finance additional growth, especially internationally, this person said.
News of LinkedIn’s plans was first reported by Reuters.