LinkedIn Files for Initial Public Offering
LinkedIn Corp., a business social networking site, said yesterday it plans to raise up to $175 million in an initial public offering.
LinkedIn has more than 90 million users globally. Most of the 90 million use the site for free, but LinkedIn has a premium subscription model (since 2005) which gives the members enhanced communication tools and recruiters more access to candidates. The company also takes advertising on the site.
LinkedIn had revenues of $161.4 million in the nine months ending September 2010, double the revenues from the same period a year earlier, and total revenue in 2009 was $120.1 million, the company said in its filing.
Valuation: Tiger Global Management LLC paid $20 million for a stake in the company in July, valuing LinkedIn at $2 billion. Members of SharesPost say it is now trying to auction LinkedIn shares at a valuation of almost $3 billion.