LinkedIn, the social networking site for professionals, plans to go public in 2011 and has selected its financial underwriters: Morgan Stanley, Bank of America and JPMorgan being the book runners. Bankers made their pitches to the privately-held company in November. Internet companies such as LinkedIn and Zynga, a popular maker of online social games, are considering offerings well ahead of a potential IPO of Facebook.
The people familiar with the process said LinkedIn is hoping to attract investors on its reputation as one of the Web’s fastest growing social network sites.
The site claims more than 85 million members. The filing of LinkedIn’s S-1 registration statement with the U.S. Securities and Exchange Commission, which contains the basic financial information of an issuer could take months.
Linkedin, which does not disclose financial results, makes money from advertising and premium services. The valuation of a Linkedin IPO was not given by the sources.
Sales of its stock on online secondary market exchange SharesPost gives LinkedIn an implied valuation of around $2.2 billion. LinkedIn’s investors include Sequoia Capital — the venture capital firm that has backed Yahoo, Google, Apple Cisco Systems and Oracle — Greylock Partners, Bessemer Venture Partners and Goldman Sachs.
Quite a good lineup I believe.