LinkedIn IPO frenzy -- would you buy the stock?
The coming LinkedIn IPO -- expected tomorrow -- may be a resounding success, as frothing-at-the-mouth investors appear eager to throw their money at big social media companies. The company is expected to prices its shares tonight and make them available on the stock market tomorrow, under the New York Stock Exchange ticker LNKD.
Potential share price: $42-$45.
Potential valuation: ~$4.25 billion.
So, here's the question: Would you invest in LinkedIn? This Reuters article outlines some of the risks in the marketplace for LinkedIn, including the fact that it has struggled with losses and profitability.
What happens when LinkedIn becomes directly accountable to Wall Street when it's public? Will it cut expenses and investment in future growth drastically to produce better profit margins?
In this Bloomberg video, Jonathan Merriman, a tech investor, explains the LinkedIn IPO and talks about the risks. Interesting stuff:
Categories: *NEWS*, Big Ideas, Entrepreneurs & Risk Takers, Jobs & Recruiting, Media, Venture Cap







