LinkedIn is taking its success to heart offering 4 million new shares in hopes of raising a more than $1 billion. The stock, which went public in 2011 has more than quintupled in value and is now trading around $240 per share. Add to this a 37% increase in members to 238 million in early August and it’s very likely that the company will succeed with this offering. However, control of the company will remain in the hands of co-founder and Chairman Reid Hoffman.
Comparisons to Facebook are inevitable but there are some stark differences. At Facebook, the stock has remained pretty close to it’s IPO price and actually spent quite a bit of time well below it. Continued growth has brought the stock up but it has by no means doubled or tripled in value. Company founder and CEO Mark Zuckerberg continues to maintain control like Hoffman, and both companies have become mainstays in the world of social media.
When Facebook did their IPO, they plowed the money in and have been acquiring other companies and working in various areas to grow the company. However, LinkedIn has not announced any specific areas that the money will be used in or projects, instead indicating they simply want to strengthen their balance sheet.
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