SAN FRANCISCO (AP) — 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 share
in an initial public offering 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
stock market. 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 IPO.
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
LinkedIn 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.
AP
Business & Investment Opportunities
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