LinkedIn Investor Bain Capital to Sell Its Stake in Secondary Offering

LinkedIn Corp. said shareholder Bain Capital Ventures will sell all of its 3.71 million shares of the professional-networking website in a secondary stock offering.

LinkedIn plans to offer as many as 9.2 million shares for as much as $703 million, up from the $500 million sale previously announced, the company said today in a filing with the U.S. Securities and Exchange Commission. Current holders including Bain expect to sell 6.73 million of those shares.

Investors in LinkedIn are selling after the stock gained 74 percent since an initial public offering in May. In its first day of trading six months ago, the stock almost tripled to as much as $122.70 from an initial price of $45, and closed today at $78.49. Bain’s stake may be worth as much as $283.2 million in the sale, based on a proposed maximum offering price of $76.44, the filing shows.

Bain led a $53 million round of funding in LinkedIn in June 2008, valuing the Mountain View, California-based company at more than $1 billion. At the time, Bain partner Jeffrey Glass compared LinkedIn to the firm’s other early investments, including Staples Inc. and DoubleClick Inc.

Other sellers include Chief Executive Officer Jeff Weiner, Chief Financial Officer Steven Sordello and director David Sze, each of whom is selling 10 percent of his holdings. Chairman and co-founder Reid Hoffman isn’t selling any shares in the offering.

LinkedIn earlier this month reported a net loss of $1.6 million, or 2 cents a share, in the third quarter, compared with a profit of $3.96 million, or 2 cents, a year earlier. Revenue more than doubled to $139.5 million, topping the $127.4 million average of estimates compiled by Bloomberg.

To contact the reporter on this story: Douglas MacMillan in San Francisco at Dmacmillan3@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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