LinkedIn Reportedly Considering IPO

Posted in News

LinkedIn, the largest social networking site for business professionals, may be considering an initial public offering for the first quarter of this year.

The Mountain View, Calif.-based company has declined to comment on the speculation.

A source familiar with the matter told Reuters that LinkedIn has hired the following banks to advise it on the IPO: Bank of America Merrill Lynch, Morgan Stanley, and JPMorgan Chase.

“An IPO is one of many tactics that we could choose to pursue,” LinkedIn said in a statement. “We are focused on building our business and doing what is in the best long-term interest of LinkedIn members and shareholders.”

The Los Angeles Times said the valuation of the IPO is expected to be relatively small.

BGC Partners analyst Colin Gillis says this is a good move on LinkedIn’s part.

“LinkedIn has its own story to tell, and this gives them a window to get out there and tell that story,” Gillis said. “Even though the business models are different, it’s wise for LinkedIn to get out there and avoid getting lost in the Facebook noise.”

According to FT.com, LinkedIn has around eighty-five million users in 200 countries. Although LinkedIn does not have the “explosive growth” of Facebook, the Times reports, it is one of the first social networking sites to become profitable.