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Category: SocialMedia Various

LinkedIn is Now a 2 Billion Dollar Business

Written on July 31, 2010 by Rudfer Tyron

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LinkedIn is now worth 2 billion dollars in the private stock market. What do you think of this valuation - correct or erratic?

Still the preferred online-networking lair of Fortune 500 companies and at least 35 million worldwide users, proves its profitability by reaching $2 billion dollars in value in the private stock market.

The recent came out from the news that the hedge fund Management LLC spent $20 million for one percent of LinkedIn Corp’s stakes, which were purchased from existing investments. The professional-networking site sells a share for $21.50. Outstanding shares still count 105 million. Multiply this figure to the amount the hedge fund paid for the stake percentage it purchased and you will end up with approximately $2 billion.

105 million outstanding shares x $20 million = $2.26 billion

In 2008, the business-oriented site was worth $1 billion, with funds raised from stock purchases of big names like Goldman Sachs, Sequoia Capitals and SAP Ventures. Moving on to 2010, LinkedIn has gone through an almost-roof raising share demand, but still a long road to go from top players like Facebook, which currently values at $25 billion in the same market. But we cannot downplay the fact that LinkedIn has reached a milestone at its current market price.

Will it keep moving upward? Given the unfortunate results of hedge funds’ public offerings, these organizations are seeking to invest in private technology companies. If this happens, the answer is yes. And given the businesslike culture that the online hub for professionals continues to implement in its platform, advertisers may keep on patronizing the site – and LinkedIn can stay in the market, even grow bigger.

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