LinkedIn has confirmed that it is to float later this year – as investor interest in social media sites continues to soar.
Last week’s Facebook valuation officially reached $50billion, and commentators expect that it too will float soon.
It is thought LinkedIn hopes to beat Facebook to the draw; exploiting the demand for shares in these types of business, before too many investors have their social network desires sated.
Launched nine years ago LinkedIn has 90m users, compared to Facebook's 600m. However, with a more specialised business target audience, and straightforward revenue models where members can sign up for premium services, many see it as potentially a better longer term bet.
LinkedIn reported net revenue of $161.4m, with a profit of $1.85m in the first nine months of this year. This represents a near doubling of its revenue compared to last year.
The number of LinkedIn shares to be offered for sale and their price range has not yet been revealed making it hard to estimate how much money this IPO may raise. But private share dealing in the company suggests the company could be worth around £2.5billion.