The value of U.S.-based LikedIn Corp. got a good boost in July after a USD 20 million investment by Tiger Global Management, LLC. The Tiger investment represents a 1% stake, acquired through the purchase of shares from existing shareholders at USD 21.50 per share. With 105 million shares still outstanding, the USD 21.50 price values the company at more than USD 2 billion.
Tiger’s investment is believed to be in anticipation of an eventual IPO. Though LinkedIn has not publicly stated an IPO is on the horizon, equity investors often buy shares in privately held companies in anticipation of reaping profits when the company goes public.
Tiger made a similar investment in Zynga Game Network late last year.
LinkedIn Corp. (www.linkedin.com)
LinkedIn operates the professional networking site known as LinkedIn.com. The site is similar to social networking peers like Facebook, but is geared toward helping business professionals connect with others in their industry, network with potential customers, find jobs, and keep pace with changes in the business world.
Among LinkedIn’s 70 million members are professionals and executives from each of the companies on the Fortune 500 list.
The list of LinkedIn investors is an impressive one, with names like Goldman Sachs, SAP Ventures, McGraw-Hill, and Greylock.
The company employs 650 and maintains offices in New York, San Fransisco, Omaha, and London.
Tiger Global Management
Tiger Global Management is an American investment manager of private equity and hedge funds. The firm focuses heavily on the technology sector but is also active in energy, media, real estate, and retail.
Investments span the globe in most sectors, but where real estate is concerned Tiger Global prefers China, Europe, and India. The firm also invests in U.S. fixed income markets and hedge funds. Currently, Tiger Global manages roughly USD 5 billion in total assets.