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LinkedIn Wants More Cash, Offers to Sell $1.15B Worth of Stock

allthingsd.com

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Re: LinkedIn Wants More Cash, Offers to Sell $1.15B Worth of Stock

#13

Post by swr »

minimax wrote: post #12

Does this dilute existing LinkedIn shareholders?

Yes. According to the prospectus[1] 4,165,972 shares new shares are being issues raising the outstanding Class A shares to 97,732,877.

This is part of the reason there was a bit of a sell off after the announcement.

[1] http://www.sec.gov/Archives/edgar/data/1271024/0001047469130...

Re: LinkedIn Wants More Cash, Offers to Sell $1.15B Worth of Stock

#16

Post by xxpor »

veemjeem wrote: post #7
Apocryphon wrote: post #5

Earlier quoted context omitted.

Don't they have a more cohesive and profitable business model than Facebook?

Even Facebook has a better model as their P/E ratio is only 200 or so.

Saying the value of a biz model is inversely proportional to P/E is ridiculous.

Re: LinkedIn Wants More Cash, Offers to Sell $1.15B Worth of Stock

#17

Post by xxpor »

swr wrote: post #13
minimax wrote: post #12

Does this dilute existing LinkedIn shareholders?

Yes. According to the prospectus[1] 4,165,972 shares new shares are being issues raising the outstanding Class A shares to 97,732,877. This is part of the reason there was a bit of a sell off after the announcement. [1] http://www.sec.gov/Archives/edgar/data/1271024/0001047469130...

Mathematically, their price should go down exactly (due to this announcement) (1 - Old # of outstanding shares / New # of outstanding shares)%

Re: LinkedIn Wants More Cash, Offers to Sell $1.15B Worth of Stock

#19

Post by ser0 »

Pxtl wrote: post #14

LinkedIn is doomed the moment real competition appears. People only use it while grimacing with disgust.

I agree, I think LinkedIn's value for network participants is very low. For someone trying to find information it is even lower. The one useful thing I see from it now is that it helps confirm someone's claim that they worked somewhere; through checking of people in their network.

However, things like promoting of skills, constant 'do you know ...' emails, and other meaningless profile building tasks that results in engagement with the website, appears to be little more than an exercise in cheap self promotion.

Perhaps I'm not the intended audience, but I find that marketing types tend to be the most active users on LinkedIn. What that says about the nature of the service, I'm not too sure at this point.

Re: LinkedIn Wants More Cash, Offers to Sell $1.15B Worth of Stock

#20

Post by taway2012 »

rthomas6 wrote: post #15
peterjancelis wrote: post #2

At a P/E of 935, I would also sell all the shares I could. http://finance.yahoo.com/q?s=LNKD

So... why would it be a bad idea to short the stock now? Somebody talk me out of it before I make an expensive mistake.

This is why: the market can stay irrational longer than you can stay solvent.

https://duckduckgo.com/?q=The+market+can+stay+irrational+lon...

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