3 ms·

Is linkedin really worth that much?

• swombat 16y ago
  Your question is fairly meaningless. There are many different ways to value something, but one of the more reliable ones is "what are people willing to pay for it?" By that valuation method, then yes, LinkedIn is really worth that much. By other valuation methods, probably not.
  • robryan 16y ago
    I guess what I mean is whether people that have followed them over time or are regular users, is that valuation really justified. I guess the investors could be looking to make a fairly quick profit if the do have an IPO.
    • mikeryan 16y ago
      * I guess the investors could be looking to make a fairly quick profit if the do have an IPO.* I'd guess that IPO or Acquisition potential are the primary reasons for the investment. ... on a side note are we related? ;-)
• weego 16y ago
  The detail gives you a clue: The purchase, at $21.50 a share for about a 1 percent stake, was from existing shareholders and doesn’t represent new investment
  • blacksmythe 16y ago
    It is true that existing shareholders might not price the round fairly if they have ulterior motives on the pricing. However, frequently insider funding rounds are at realistic valuations, or even unrealisticly low valuations, to force all existing shareholders to participate or be diluted.