LinkedIn IPO: stock price $45, valuation $4.3B, date 5/19, symbol (LNKD)

LinkedIn logo
By Richi Jennings. May 19, 2011.

Looking for LinkedIn IPO information? Here it is. The initial public offering of the professionals-orientated social network will be later today on the NYSE, at a stock price of $45, which implies a $4.3B valuation. In IT Blogwatch, bloggers get linked in (LNKD).

Your humble blogwatcher curated these bloggy bits for your entertainment. Not to mention Error'd: A problem has been; 4200x DVD; GoDaddyGoDaddyGoDaddy; and more...

Boom! It's Kara Swisher, with her broken calculator:

LinkedIn will price its shares at $45 each in its IPO ... [which] will give the Silicon Valley business networking company a $4.5 billion valuation ... a sign that the once moribund market for Internet companies is back.

...

Stunning given LinkedIn earned just over $15 million on revenues of $243 million last year. ... [It's] set to begin trading tomorrow on the New York Stock Exchange under the LNKD ticker.  
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Jessica Guynn adds:

The 8-year-old company will make its stock market debut with a value of $4.3 billion ... the biggest from a U.S. Internet company since Google set the gold standard nearly seven years ago.

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Most analysts expect shares to rise Thursday. ... LinkedIn's lofty valuation ... already has invited comparisons to the heyday of the last boom. ... [It'll] mesmerize entrepreneurs ... who have seen private market valuations ... soar but have no clue what their businesses are worth.

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The IPO will also mark a big payday for LinkedIn's co-founder and chairman Reid Hoffman ... [who] has a 20% stake in the company ... worth $858 million ... [and] Chief Executive Jeff Weiner: ... His 2.5% stake is worth roughly $105 million.  
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Shira Ovide runs with that angle:

Call the valuation stupid, call it smart, but ... LinkedIn is making a boatload of shekels for a cluster of lucky folk. ...

  • Hoffman ... is the undisputed winner of the lucky duck sweepstakes. ... Hoffman already made millions from PayPal, his last company. ...
  • Goldman Sachs ... is selling all 871,840 of its shares ... pocketing $39 million. ... Goldman essentially quadrupled its money in three years. ...
  • McGraw-Hill ... owner of Standard & Poor’s, made a $5 million investment ... at a valuation of roughly $1 billion. ...
  • Jeffrey Weiner ... has been in the CEO job for less than two years after stints at ... Greylock Partners ... Accel Partners, and ... Yahoo. ...
  • Sequoia Capital, Greylock, Bessemer: The trio of private-equity firms ... are being rewarded with a stake valued ... at $1.6 billion. The VC firms also are holding onto their LinkedIn stock.  
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Tomio Geron seems surprised the price is so high:

On Tuesday LinkedIn raised the price of its expected price range to $42 to $45 per share from $32 to $35 per share.

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Investors–and the tech industry–are closely watching the ... float as a bellwether ... for Internet IPOs. ... Other closely-watched companies ... will be waiting to see how LinkedIn does before they make their own moves.  
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Larry Dignan also wonders what's next:

What happens once a few more social networking companies go public? Is [it] just a warm up for Facebook? Or Zynga? Or Groupon?

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The company ... has warned that it expects revenue growth to slow ... and that it won’t be profitable in 2011. ... LinkedIn is investing for future growth. ... Many LinkedIn users aren’t regular ... you have all you need for quite a debate.  
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But Gary Rivlin prepares for a bloodbath:

Will mom and pop investors get burned?

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Sure, buying shares in LinkedIn makes sense if you’re a favored client of ... big banks putting together the LinkedIn deal and have access to the inside price. ... With LinkedIn able to sell itself as a hot social media company, its story is sizzling right now.  
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And Finally...

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Richi Jennings, your humble blogwatcher

Richi Jennings is an independent analyst/consultant, specializing in blogging, email, and security. He's also the creator and main author of Computerworld's IT Blogwatch -- for which he has won American Society of Business Publication Editors and Jesse H. Neal awards on behalf of Computerworld, plus The Long View. A cross-functional IT geek since 1985, you can follow him as @richi on Twitter, pretend to be richij's friend on Facebook, or just use good old email: itbw@richij.com. You can also read Richi's full profile and disclosure of his industry affiliations.

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