LinkedIn is to float its social network on the New York stock exchange, launching an Initial Public Offering (IPO) of up to $175 million.
The company was founded in 2002 by former PayPal exec Reid Hoffman and a number of other founding members of the online payment service. The site now has 90 million users and will be the first social network to be publicly listed on the New York stock exchange.
LinkedIn’s net revenue in the first 9 months of 2010 hit $614 million, with the company securing a net profit of $1.85 million in the same period, according to a US regulatory filing.
The company’s decision to go public is likely to have been influenced by Facebook eyeing going public. The worlds biggest social network managed to earn $1.5 billion from a recent funding round led by Goldman Sachs, valuing the company at $50 billion.
Facebook plans to publicly disclose its financial results by spring 2012.
“LinkedIn is bringing the very hot concept of social networking to the practical business world,” Dixon Doll, co-founder of venture-capital firm DCM, said to Bloomberg.
“The whole social-networking phenomenon may be in the fourth or fifth inning and none of these have gotten public yet.”