LinkedIn valued at $18bn plus
|04 Mar 2013 10:37 GMT||Back|
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LinkedIn shares are soaring and the business is now valued at more than $18bn, while stocks in other social networks have fallen.
At its initial public offering (IPO) in 2011, LinkedIn was valued at just $4bn. This is in stark contrast to Facebook, which has come nowhere near its IPO price since it floated in 2012. Zynga and Groupon have had similar experiences since their IPOs.
The so-called ugly duckling of social media has over 200 million members worldwide, with more than 11 million in the UK and 74 million in the US.
LinkedIn has attracted spending from big brands looking to recruit talent.
As reported by The Wall Street Journal (WSJ): "Now LinkedIn is trying to give corporate customers – which generate more than half its $972 million in annual revenue through its 'talent solutions' business – more reason to pay. It is testing corporate ads that serve content such as articles or status updates to LinkedIn's users.
Chris Hoyt, who helps manage recruiting for PepsiCo Inc told The WSJ that the beverage maker has ramped up its spending on LinkedIn over the past three years by paying for job ads, career pages and a recruiter talent finder. The professional-networking site has become one of PepsiCo's main sources of job candidates.
The WSJ report goes on to say: "LinkedIn also is pushing into content by aggregating business news and hosting expert blog posts, to give professionals more reasons to linger on the site. The more active its members, the more ads LinkedIn can sell and the more data it garners for its corporate customers' hiring and recruiting needs."
The next big IPO in the social media field is Twitter, which is expected to seek an IPO in 2014, and is valued at around $9bn-$10bn.