LinkedIn Corp., the professional networking site, now has a worth of $2 billion. This figure was arrived at after Tiger Global Management LLC, a hedge fund founded by Chase Coleman, paid $20 million for a stake, according to 2 unnamed people.
The deal worked out at $21.5 dollars per share for a stake of around 1% and apparently does not represent new investment, being from existing shareholders. the source of this has not yet been named as the sale has not been disclosed at this point. Private technology companies are currently under a lot of interest from hedge funds, private-equity firms and mutual-fund companies, eager to benefit when the companies go public, according to Ari Levy over on Bloomberg.
Tiger also recently invested in Zynga Game Network inc., also a candidate for IPO. LinkedIn now has over 70 million members and Jeff Weiner, its CEO, said last month that it is dealing with inquiries from interested bankers although did not comment on a forthcoming IPO. LinkedIn already raised $76 million from investor funding such as Bain Capital Ventures in 2008 and Weiner commented that the money remains in the bank saying, “We don’t need the capital.” He also quoted both Sequoia Capital and Greylock Partners as other investors.
Coleman and LinkedIn have both so far declined to comment. For more on this go to Bloomberg.com. what are your thoughts on LinkedIn’s valuation of $2 billion? Why not send us a comment.