Monetizing LinkedIn

Posted on 17th Apr 2013 @ 9:11 AM

                                                                                   Monetizing LinkedIn

Social network LinkedIn, which allows a number of professionals to form new business contacts increase the initial cost of its public offering. Thus, the value of a single share will rise from $ 42 to $ 45, allowing the market value of the company to reach $ 4 billion In just 8 days ago from LinkedIn announced that the company's value up to $ 3 billion.

 Currently, the social site trying to improve the assessment of its public offering of about $ 217 million through the sale of 4.8 million common shares at the exchange. At the same time, the data indicate that the number of employees and shareholders of the company plans to sell another 3 million shares to private investors. Date and other socially oriented companies such as Twitter and Facebook has become the subject of intense increase in market value.

 The trend, which is driven by the desire of shareholders, can buy as much as possible a larger number of shares. Thereby stimulate an increase in the market share of their own company. LinkedIn's shares will debut on the New York Stock Exchange on May 19 under the title "LNKD". It will be interesting to see how the appearance of the company on the stock exchange will affect the popularity and market value and in the future.

The majority of the revenues of LinkedIn come from fees for agencies that employ people and companies that want greater access to the website to be able to fill their vacancies. The company also sells online advertising. Last year, LinkedIn reported 3.4 million profit on revenue of 243.1 million dollars. For the first three months of 2011, the company's revenues increased by more than double compared to the same period last year. LinkedIn will offer investors 4.8 million shares.

The company believes that IPO-it can rise up to 274.4 million dollars. From LinkedIn estimate that net income for the company at a price of 33.50 dollars per share will amount to approximately 146.6 million after deducting costs.

LinkedIn's debut on the stock exchange could pave the way for other popular sites that connect people with common interests, such as Facebook, Groupon and Zynga, for example.