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LinkedIn is a classic example of how a company must shift from serving their customer to serving their investors after they go public. They used to be a very u

by Zelphyr 12y ago

LinkedIn is a classic example of how a company must shift from serving their customer to serving their investors after they go public. They used to be a very useful service.[1] But the closer they got to their IPO the more the started doing things that were clearly in the best interest of generating more page views regardless of how valuable those things were to their users. To my mind this lawsuit was brought about because of that very behavior. 1: Not accounting for the recruiters who have plagued it. Something LinkedIn could probably deal with but they don't want to because that would affect page views.

josu 12y ago
>page views Why does Linkedin care about pageviews?
- 001sky 12y ago
  Pretty clearly stated in the comment you are replying to. Investment Bankers care about pageviews. Valuations are driven by operating metrics when financial metrics alone cannot support a valuation at desired levels. Since linked-in executives get a cut of the IPO proceeds (directly or indirectly), the logical link follows that "the company" cares about these things. Or at least they did in the context of pre-IPO window dressing.
  - josu 12y ago
    Sorry, I thought that Linkedin didn't serve ads, I should have checked before.
MichaelGG 12y ago
Presumably they try to drive up page views in order to make more revenue. Are you saying that they wouldn't do the same if they were still privately held? Maybe after their IPO the thought is that they're no longer going to get magical money raining down on them, so they actually have to try to generate more profit? Although it must be hard for people with option grants when there's a P/E approaching 1000 and you need the price to keep going up to do well.
- Zelphyr 12y ago
  I'm saying they drive up page views in ways that are independent of the value those things provide to their users. I'm not against increasing revenue. I'm against scanning my contacts list without my permission so they can invite my friends. What value does this provide to me? None. What value does it provide to them? A ton because if even a small percentage of my contacts signs up then LinkedIn has just increased page views and thus, revenue.

by Zelphyr 12y ago

josu 12y ago

>page views Why does Linkedin care about pageviews?

001sky 12y ago
Pretty clearly stated in the comment you are replying to. Investment Bankers care about pageviews. Valuations are driven by operating metrics when financial metrics alone cannot support a valuation at desired levels. Since linked-in executives get a cut of the IPO proceeds (directly or indirectly), the logical link follows that "the company" cares about these things. Or at least they did in the context of pre-IPO window dressing.
- josu 12y ago
  Sorry, I thought that Linkedin didn't serve ads, I should have checked before.

MichaelGG 12y ago

Presumably they try to drive up page views in order to make more revenue. Are you saying that they wouldn't do the same if they were still privately held? Maybe after their IPO the thought is that they're no longer going to get magical money raining down on them, so they actually have to try to generate more profit? Although it must be hard for people with option grants when there's a P/E approaching 1000 and you need the price to keep going up to do well.

Zelphyr 12y ago
I'm saying they drive up page views in ways that are independent of the value those things provide to their users. I'm not against increasing revenue. I'm against scanning my contacts list without my permission so they can invite my friends. What value does this provide to me? None. What value does it provide to them? A ton because if even a small percentage of my contacts signs up then LinkedIn has just increased page views and thus, revenue.