Recession or no Recession, Social Media sites are proving to be hot cake. LinkedIn shares are being sold for $30 a piece on the secondary stock exchange SharesPost, giving the social networking site a valuation of around $3 billion.
The auction is being kept private, but people close to the matter have started speaking. According to documents obtained by Bloomberg, LinkedIn employees and share holders would have to commit to SharesPost by the end of this week, and both buyers and sellers would be informed about the results of the auction on 28th of Jan.
LinkedIn has 97.1 million shares outstanding, and the $30 dollar a share price, gives the company a valuation of around $2.91 billion. SharesPost intends to sell at least 95,000 shares to buyers will to invest more than $100,000 in the company.
The secondary offering will give LinkedIn share holders a chance to divest their shares before the company finally files for an IPO. LinkedIn has already hired investment banks including Morgan Stanley and JPMorgan Chase to advise on an IPO.
LinkedIn is currently valued at $2.51 billion on SharesPost index, which makes it the fourth largest company by valuation on SharesPost, with Facebook being the largest with $76 billion valuation followed by Zynga and Twitter.
LinkedIn has raised $103 million in funding from Sequoia Capital, Greylock Partners, the European Founders Fund, Bessemer Venture Partners, Bain Capital Ventures, Goldman Sachs, The McGraw-Hill Companies, and SAP Ventures. LinkedIn was valued at more than $1 billion in its last round in October 2008. The company has been in black, since the past couple of years.
There’s a very high likelihood that LinkedIn may fetch an astoundingly higher valuation, when it finally goes public. This would certainly be the reason, why many investors would be clamoring to get a piece of the pie.