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Keep in mind that going public involves properly valuing the company so that securities can be offered. Traditionally, young companies that are vigorously growing garner enough interest to enter the public space and diversify their income and structure. However, the rules for web based companies are currently changing.
Online advertising is the main source of revenue for many sites including LinkedIn. Advertising is currently going through a revolution and this means that traditional valuations cannot be accuratley made for web based companies.
Regardless of the state of the economy, the value of web based comapnies looking to go public right now would be too low to garner the interest needed for a successful IPO.
If I was to put my chips down, I'd suspect that LinkedIn would be one of the first companies to come out of the advertising revolution ahead. They have a strong foothold in the minds of a few different demographics and are engaged in an industry primed for growth in the next couple of years. As a result, I'd suspect that if they continue to lead in the social resume space, they'll do very well without an IPO.
I hope that this helps!
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http://www.techcrunch.com/2009/02/02/linkedins-reid-hoffman-we-can-go-publi...
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M$1
February 02, 2009 11:34 PM
When will LinkedIn go public?
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Answers (3)
February 03, 2009 12:07 AM
I don't think any web companies will be going public in the next 6 months to a year. Keep in mind that going public involves properly valuing the company so that securities can be offered. Traditionally, young companies that are vigorously growing garner enough interest to enter the public space and diversify their income and structure. However, the rules for web based companies are currently changing.
Online advertising is the main source of revenue for many sites including LinkedIn. Advertising is currently going through a revolution and this means that traditional valuations cannot be accuratley made for web based companies.
Regardless of the state of the economy, the value of web based comapnies looking to go public right now would be too low to garner the interest needed for a successful IPO.
If I was to put my chips down, I'd suspect that LinkedIn would be one of the first companies to come out of the advertising revolution ahead. They have a strong foothold in the minds of a few different demographics and are engaged in an industry primed for growth in the next couple of years. As a result, I'd suspect that if they continue to lead in the social resume space, they'll do very well without an IPO.
I hope that this helps!
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February 03, 2009 06:02 AM
Linkedin has been profitable for the past 2 years. According to a recent interview with Reid Hoffman (Linkedin Founder/CEO) at Davos the company can go public "any time they want to." Given the state of the public markets, my guess is they will wait until the IPO window opens back up. The good news for Linkedin is that they are profitable and have $80M in the bank, so there is really no hurry. They could be one of the first "high flyers" out of the gate once the IPO window opens up again. Take a look at the attached interview with Reid to get more details
Source(s):
http://www.techcrunch.com/2009/02/02/linkedins-reid-hoffman-we-can-go-publi...
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