LinkedIn: Now Worth More Than $2 Billion

A new report suggests that LinkedIn’s value has surpassed the billion mark, based on recent investments from outside investors.

According to Bloomberg, hedge fund Tiger Global Management spent million to acquire approximately a one percent stake in the business social network. The hedge fund specifically paid .50 per share.

That’s where the math comes in. According to SharesPost, an online marketplace for privately-held companies, LinkedIn has 105 million shares outstanding. Multiply that by the .50 Tiger Global Management spent, and you arrive at a valuation of .26 billion.

It’s important to note that Tiger Global didn’t make a new investment in the company; it acquired its shares from an existing investor.

Because this transaction occurred on the private market, these numbers aren’t concrete (for example, SharesPost estimates LinkedIn’s value at around billion). However, we think it’s safe to assume that LinkedIn is now a multi-billion dollar company. Of course, that’s still a fraction of the price that Facebook currently commands, but how can you really complain about having a multi-billion dollar company?

Do you think LinkedIn is worth billion, or do you think that valuating is too high or low? Let us know your thoughts in the comments.

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