LinkedIn is proving it pays to network. The company has filled its S-1 papers with the Security and Exchanges Comission for an initial public offering.
2010 was the year of IPOs, or at least guessing which Internet giants would hit Wallstreet first. Facebook, Demand Media and Skype were the biggest names tossed around the business networking site LinkedIn is starting 2011 as a publicly traded company.
But who owns what of LinkedIn? Previously unreleased details were revealed in its SEC filing as the company prepares to go public.
Via TechCrunch
TechCrunch sifted through LinkedIn’s S-1′s papers and discovered founder/chairman Reid Hoffman along with his wife Michelle Yee own 19,066,032 shares or a 21.4% share of the company. Other notable shareholders include investors Sequoia Capital, Greylock Partners and Bessemer Venture Partners which own 18.9, 15.8 and 5.1 percent of shares respectively. Until the share prices are announced, we won’t know exactly how big the impact of say, 19 million shares is but in the mean time we can guesstimate.
Nicholas Carson at Business Insider did some math and came to this conclusion:
But we do know the company has ~$200 million annual revenues. That’s up 200% from a year ago, so a healthy 10X valuation is entirely called for. So figure it’s a $2 billion company, pre-IPO.
That would mean LinkedIn Reid Hoffman’s 21.4% stake is worth $430 million. CEO Jeff Weiner’s is worth $80 million. Sequoia’s stake – bought for $4.7 million – is worth $380 million, Greylock’s $320 million, Bessemer’s, $100 million.
Not bad for a company that makes networking with business professionals easier. If this is LinkedIn’s IPO, what will Facebook’s monstrous IPO look like?
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I was pleased recently to receive an email this weekend from the founder of Linkedin advising that I was among the first million users or registrants of Linkedin. Having qualified to be included in this special club of early adopters I would like to raise a proposal for consideration and comment.
Linkedin is a very useful and I believe business oriented website and I genuinely feel it has great potential for business longevity far beyond that of Facebook. This is simply because it contains useful business content that is continually updated by it members and can be indexed and located by industry category. As membership grows this usefulness will grow exponentially in addition to those obvious benefits to those in the recruitment field.
As Linkedin is the “platform” and essentially its members are the “content” which they provide grati,s I want to raise the question of whether the founders might consider including the first one million members as participants in its intended IPO
As all social networking sites would acknowledge it is the first critical mass of members which takes it into the realm of a serious business model which then attracts the external investors. When Linkedin reached 1,000,000 members it achieved a critical mass which then attracted further members and perhaps this was impliedly acknowleged by the founder in sending an email recognition to those members who had that special distinction,myself included.
What could be possibly more democratic in a free market economy than a participation in the IPO by those who were among the early adopters that helped Linkedin achieve its milestone of a million members and set it on its path to a viable and hopefully profitable business going forward. Not to mention, the beneficial publicity which would ensue for Linkedin in granting this privilege to that class of members and therefore setting it apart from its competitors.
I look forward to receiving others view or comments on the above.
Richard Kimber
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