All the Social Graces At the Ball and LinkedIn Is the First to Dance
Today, LinkedIn’s Reid Hoffman is a billionaire as a result of the staggering IPO today, the 19 million shares he retains are work about 1.5 billion based on a stock quote and the rise of initial stock from $45 to $81, the biggest return for an internet company making its first debut on Wall Street.
Waiting in the wings are the other social media scions, LinkedIn’s cousin Facebook, Twitter, Zynga and Groupon, financial revelations and courting bankers are the final steps before their own coming out balls.
LinkedIn’s other relatives that are expected to profit and in attendance are Goldman Sachs, McGraw-Hill and Bain Capital Venture Integral Investors, LLC. Sadly, Investors Sequoia Capital, Greylock Partners and Bessemer Venture Partners, which together own about two-fifths of the company, will not participate in the IPO.
The Wall Street society reporters quote several knowledgeable sources, Lou Kerner in an article for Physorg by Charlotte Raab, saying he was not surprises at the attraction of LinkedIn, stating “There’s very significant investor demand for what’s going to be a premier public equity in social media”, he dismisses any speculation that a new internet bubble will materialize. At Morning star IPO analyst Bill Buhr agrees that “the appetite for social media stock is understandable, but not necessarily justified. He cites the comparison of Facebook to Google, Facebook's valuation of $100 billion on a $4 billion revenue expectation that puts a 25 times comparison to Google with a 5 times sale multiple.”
LinkedIn’s IPO was considered to be a float or opening act for social media coming of age especially Facebook IPO where the valuation of possible $235 million by 2015, and when the social gaming star Zynga weighs in with Groupon for their debut balls, the anticipation is that these two will garner exponentially larger returns due to their wider audience and appeal.Continued on the next page