LinkedIn CEO, other insiders prepare to sell stock

Nov 15, 2011 By MICHAEL LIEDTKE , AP Technology Writer

LinkedIn Corp.'s employees and early backers plan to sell more than 6.7 million shares as they try to reap the gains from a rapid run-up in the online professional networking service's market value.

CEO Jeff Weiner wants to sell more than 372,000 shares, the most among LinkedIn's management. The company listed the amounts in a regulatory filing Monday.

After two years as LinkedIn's CEO, Weiner is in line for a $29 million windfall from the sale. That's based on Monday's closing price of $78.49 for LinkedIn's shares. The stock sold for $45 per in an completed in May.

Investors are betting LinkedIn is still in the early stages of its growth as it tries to reshape the way people try to advance their careers. Since its 2003 inception, LinkedIn has attracted more than 135 million members who have posted details about their current and past jobs on the company's website.

Weiner, 41, will still own 2.3 million shares after his stock sale is completed.

Reid Hoffman, LinkedIn's co-founder and executive chairman, isn't selling any of his nearly 19 million shares. That stake is currently worth about $1.5 billion.

LinkedIn, which is based in Mountain View, plans to sell nearly 1.3 million additional shares to help finance its expansion. The company announced its plans to sell the stock earlier this month, but hadn't spelled out how many shares it would offer until Monday. The sale aims to raise about $100 million to supplement the $367 million that LinkedIn already had in the bank as of Sept. 30.

The mass stock sales will test investors' faith in LinkedIn by nearly doubling the number of shares circulating on the . LinkedIn's IPO sold about 9 million shares. Including LinkedIn's fundraising effort, at least 8 million shares are supposed to be sold this time around.

LinkedIn's shares have fallen by about 10 percent since the company reported a third-quarter loss of $1.6 million on Nov. 3. They slipped $2.49, or 3.2 percent, to $76 in extended trading after the company made the SEC filing.

Most of the stock in this offering is being sold by three venture capital firms that invested in LinkedIn before the . Bain Capital Venture Integral Investors plans to sell all 3.7 million LinkedIn shares that it owns. Greylock Ventures plans to sell 10 percent of its 14 million LinkedIn shares and Bessemer Venture Partners plans to sell 11 percent of its nearly 4. 6 million shares.

Other big sellers include: Allen Blue, another co-founder who is offering more than 118,000 shares: Steven Sordello, LinkedIn's chief financial officer, who is offering more than 98,000 shares; and Dipchand "Deep" Nishar, a senior vice president in charge of products who is offering 94,500 shares.

Explore further: India on tap as first market for Microsoft Lumia 535

2 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

LinkedIn looking for $32 to $35 per share in IPO

May 09, 2011

(AP) -- Professional networking website LinkedIn Corp. hopes to sell its stock for $32 to $35 per share in an upcoming initial public offering. Its IPO may encourage other growing Internet services to make ...

LinkedIn's IPO priced at $45 a share

May 18, 2011

(AP) -- LinkedIn priced its IPO at $45 per share to set up the first stock market debut among a fraternity of Internet networking services that's captivating investors.

LinkedIn hits 100 million members

Mar 22, 2011

LinkedIn, the career-oriented social network, said Tuesday that it has hit 100 million members, more than half of whom live outside the United States.

LinkedIn IPO stirs Internet bubble fears

May 18, 2011

LinkedIn, the professional-networking website firm, said Tuesday it expects to be worth as much as $4 billion when it goes public soon, sparking fears of another Internet bubble. ...

Recommended for you

EU Parliament votes to break up Google

1 hour ago

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

5 hours ago

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

20 hours ago

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.