LinkedIn Corp (LNKD) Is Going To Raise $1B From Stock Sale
LinkedIn Corp (NYSE:LNKD) has plans to raise $1 billion in a sale of 4.17 million shares of its Class A stock after raising over $700 million in their initial stock offering in May 2011, according to Bloomberg. LinkedIn has seen their stock surge to over $245 from their $45 debut in May 2011.
Over the past couple of years, LinkedIn Corp (NYSE:LNKD) saw their user base double and they have added features to keep users on their website for longer periods of times. The company also increased subscription prices for recruiters.
By selling new shares, LinkedIn will dilute the stakes of existing equity holders. LinkedIn plans on using the funding for working capital, product development, and to make strategic acquisitions or investments.
At the end of the second quarter, LinkedIn had around $873 million in cash, cash equivalents, and short-term investments.