LinkedIn Now Valued at Over $1 Billion

Jun 17, 2008 Posted by

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…

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