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A new report suggests that LinkedIn’s value has surpassed the $2 billion mark, based on recent investments from outside investors.
According to Bloomberg, hedge fund Tiger Global Management spent $20 million to acquire approximately a 1% stake in the business social network. The hedge fund specifically paid $21.50 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 $21.50 Tiger Global Management spent, and you arrive at a valuation of $2.26 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 $2 billion). However, we think it’s safe to assume that LinkedIn is now a multibillion 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 multibillion dollar company?