LinkedIn Now Valued at Over $1 Billion
Today, LinkedIn announced a new round of funding, raising $53 million to fund growth of its four revenue streams (one of which is recruiting focused). As a result of the funding, LinkedIn is now valued at over $1 billion.
The $1 billion valuation for LinkedIn is the latest in a series of deals that have placed price tags on the bustling online networking sector, largely centered in Silicon Valley. Other deals include AOL’s acquisition of Bebo in March for $850 million; News Corp.’s $580 million purchase of MySpace in July 2005 and Microsoft’s $240 million strategic investment for a 1.6 percent stake in Facebook in October. Analysts said Microsoft, struggling to compete with Google and Yahoo on the Internet, was willing to pay a premium that theoretically valued Facebook at $15 billion.
Social networks, especially the recognized brands like LinkedIn, are still command a healthy premium in the market. With LinkedIn’s continued subscription growth and user engagement, I sense some anticipated courting as an acquisition candidate. Thanks to Yahoo, Microsoft now has some extra bucks sitting in the bank account…