LinkedIn admits to buyout talks

Mon Jan 21 2008, 09:50 AM UTC

LinkedIn co-founder Reid Hoffman admits that the company has been in talks with the "usual suspects" about a possible buyout, but has decided not to sell, according to an AP report. "I know we are going to be much more valuable in a year or two... I think an IPO is by far and away the most likely outcome," the chairman told the news agency, which reports that a listing would likely take place in a year or two.

Deal Details

News Corp was one of the companies tipped as a potential bidder for the professional social network, which lets its 18m users post career details, search for jobs, business opportunities and clients. The speculation spurred LinkedIn, which forecast revenues of USD75m to USD100m this year, to value itself at more than USD1bn.

Following in the footsteps of MySpace and Facebook, LinkedIn recently revamped its site and opened up to third-party developers. Unlike its rivals, however, LinkedIn says it will be highly selective in choosing its partners for third-party apps, explaining that, with its aim of becoming an indispensable business tool, it would "only work with select business partners who have already built high value, high productivity applications." The professional social network claims that its average user is 41 years old and has an income of USD106,000.

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