Monday, May 09, 2011
LinkedIn to Float
The business and professional social network site LinkedIn is to float on the New York stock exchange valuing the company at over $3bn. LinkedIn, has some 100 million users and achieved a profit of $15.4m on $243m revenues in 2010, is expecting to raise $146m with its flotation.
LinkedIn has a professional demographic which makes it very appealing to advertisers looking for high spenders and decision makers. It now joins a group of highly valued internet sites such as Skype, Groupon, and Zynga, which all aim to raise huge money with their flotations in the next 12 months. LinkedIn also has both a free basic offer to members as well as a premium services aimed at the corporate market. Its revenue is made up from; Job listings and recruitment contributed (41%) of net revenue, Advertising revenue (32%) and paid subscriptions (27%).
LinkedIn clearly has huge potential in the area of search and selection recruitment and this itself can fund subscriptions, the need to belong and be seen and connect.