LinkedIn Plans $1 Billion Share Sale

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Sept. 4 (Bloomberg) -- LinkedIn filed to raise about $1 billion in a stock sale after a fivefold surge in its shares since its initial public offering in 2011. (Source: Bloomberg)

Raise $1 billion, capitalizing on a surge in its share price since the company's ipo back in 2011. he covers linkedin.

Why is linkedin diluting its shareholders?

Raising equity instead of selling debt?

If there was ever such a thing as free money, this is free money for linkedin.

They are able to sell a fraction of the shares and bring in more than twice the amount of money.

It is not that significant.

The amazing thing is you're able to sell $1 billion worth of shares after this run.

And to see some of the conversations that emerge from investors.

They're willing to top off at this point.

Do have a sense of what that is like?

On the basis of the other tech stock offerings, what might it be like?

Linkedin is playing into really powerful trends.

One is the subscription service that they sell.

There is tremendous demand for that product.

Sales on that are going pretty well.

At the same time, they're playing into the online advertising market where advertisers really want to get out there.

They're up there with facebook and twitter.

Those two trends are really playing in their favor from a financial side.

They are seeing tremendous growth across the board.

There is a clear sense that the company has a lot of momentum.

When you're talking about valuation, that raises interesting questions.

Who are the investors that can still double their money over the next few years?

Linkedin is being deliberately vague, shall we say, in its explanation for what it plans to do . strengthening the balance sheet, what are you hearing they might do with all the cash?

They had close to $1 billion in cash and equivalents.

This effectively doubles that.

There's nothing wrong with showing up your balance sheet at a time when cash is virtually free or extraordinarily cheap there in they are putting themselves in a position in case there is a downturn.

It is good to go ahead and raise money now.

It'll be interesting to see what kind of acquisition they pursue at this point if they pursue any.

Raising $1 billion is not give you the money to go after the real heavy hitters but it gives you ammunition in the startup world out there where there are any number of players that could be interesting.

He covers the company for bloomberg out in san francisco

This text has been automatically generated. It may not be 100% accurate.


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