paidContent.org - The Economics of Content

Current Story

LinkedIn: Yes, We Had M&A Talks

By Rafat Ali - Sun 20 Jan 2008 01:24 PM PST

Not that this is a surprise, but LinkedIn founder Reid Hoffman has finally admitted it has been having talks with the “usual suspects” for a buyout, but then decided not to. “I know we are going to be much more valuable in a year or two...We have had (buyout) conversations with all the usual suspects, but I think an IPO is by far and away the most likely outcome”, Hoffman told AP. The story says an IPO is likely in a year or two. The company is still projecting $75 million to $100 million of revenues in 2008...about 18 million people now have profiles on the site, roughly twice as many as a year ago, the company says.

Posted in: Information, Biz & Fin, Social Media

Tags: reid hoffman, linkedin,

Check our our new Social Media Deals Report, which examines the categories, number and size of VC and M&A deals into social media

Related Research from Alacrastore.com

3 Responses:
  • From stone Sun 20 Jan 2008 04:39 PM

    There’s very little chance that these guys go public. This is standard bs/spin. One more thing that’s a little baffling is the wide variance in revenue estimates --- which is it, $75M or $100M?

  • From noinik Mon 21 Jan 2008 07:38 AM

    They very well could go public.  as for the variance in revenue it is estimated to be between $75 and $100 because they are not a public company.  So they don’t have to say how much they are worth.  The estimate is probably based on subscriptions to the service, and advertising revenue.

  • From phil Mon 21 Jan 2008 11:14 AM

    I wouldn’t be surprised if LinkedIn’s value increases over the next 1-2 years.  They seem to be doing really well.  I have been a LinkedIn subscriber since 2006 - and I would say that what they are doing is really creating value for subscribers like me.

    As an anecdotal evidence:  I actually am getting more and more “new” invitations from people who just signed up to LinkedIn - and these are people who I earlier invited a year ago.  So it must be catching up.

    About the ad revenues?  Probably going to increase.  LinkedIn’s positioning as a “professional, privacy-orientated networking site that is beneficial to its users” makes it a good medium for media planners and people who get “social marketing”.  However, once they start veering away from this, I think they’d be in trouble - deep trouble.

    Their value lies in their ‘unique’, strong proposition.  Once they lose that - and only they can could lose that - they’d be in deep trouble with advertising.  I would rather hear them talk about business models that go beyond “advertising”.  Because frankly, I don’t think advertising is going to be sustainable too.

Post Your Comment

Mobile Options

» Mobile App
» Mobile/WAP Site

Send a News Tip

About

paidContent.org, flagship of the ContentNext Media network, provides global coverage of the business of digital content.

Rafat Ali
Publisher & Co-Editor

Staci D. Kramer
Co-Editor

David Kaplan
Senior Correspondent

Joseph Weisenthal
Correspondent

Robert Andrews
U.K. Editor

Amanda Natividad
Editorial Producer

EconCeleb Conference - The Economics of Celebrity. July 23 at the Roosevelt Hotel in Hollywood

Featured Report - 2008 Social Media Deals Report

front page of report

The economics of social media continue to heat up, with ever more buzz created in new and growing market categories. This report examines the categories, number and size of investment and acquisitions into social media and the resulting value created from 2007 through 2008. Order your report today to analyze deals made by Yahoo, Disney, Google, AOL, CBS, Hearst, Microsoft and many more.

Learn more or purchase now.

New Media/Interactive Job Listings

Post Job
More Jobs

Generous Supporters