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LinkedIn’s day in the sun: Share price doubles, worth nearly $9B in IPO

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linkedin-reid-hoffmanShares of LinkedIn, a social network for business professionals, ended their debut on the New York Stock Exchange up 109 percent at $94.25 as the first high-profile Web 2.0 initial public offering made a huge splash in public trading.

It’s a sign of the excitement around social networking and its promise, although the results were enough for some people to say it was part of a ridiculous bubble.

That means LinkedIn now has a market cap of around $9 billion — well above the valuation of $4 billion it claimed when it priced the shares of its initial public offering between $42 and $45. Shares of LinkedIn traded as high as $122 earlier today, giving the company an implied valuation as high as $11 billion. LinkedIn’s valuation is the first official record of the hyper-valuations many Web 2.0 companies like Twitter and Facebook have seen in recent years.

LinkedIn’s shares hovered at around $103 for most of the afternoon before finally dipping down below that level of support toward the end of daytime trading. The company also saw a quick decline in its share prices in the ten minutes before the markets closed, dropping as low as $91 before leveling off at around $94 minutes before the final bell. The shares were trading at $94.24 most recently in extended trading.

The company’s stunning debut on the stock market could end up creating additional chatter about whether several Web 2.0 companies are overvalued. LinkedIn’s closing share price and valuation mean the company is worth somewhere north of 36 times its revenue for 2010, which was around $243 million. There’s also the chance that share prices of LinkedIn could turn south over the next several days, like shares of Chinese social networking company RenRen. That company turned out to be a flop on public trading markets and has fallen below the IPO price of $14 to $13.75 it saw earlier this month.

A number of highly successful Web 2.0 companies like Facebook and Zynga — and LinkedIn — have seen ballooning valuations as investors have rushed to snatch up as many shares as possible ahead of what could be some of the most high-profile tech IPOs to date. Facebook, for example, was valued at $50 billion after its most recent round of funding — though it is trading at a higher price than that on secondary markets.

LinkedIn is based in Mountain View, Calif., and has more than 1,000 employees. The company, founded by Reid Hoffman (pictured above), is a business network that’s designed to help professionals connect with other potential business contacts and get a “warm introduction” through people in their network.

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Article courtesy of VentureBeat » deals

Opening Bell: 05.18.11

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For States, a Glimmer of Hope on Deficits (NYT)
From stronger-than-expected tax collections in deficit-ridden California to projected surpluses in struggling states like Michigan and Pennsylvania, a growing number of recession-weary states are finally announcing a bit of good budget news for the first time since the downturn began. But it would probably be premature to pop the Champagne, or even the prosecco — or to otherwise declare the fiscal crisis that has hammered states to be over.

Howard Marks’ Oaktree Capital sows seeds for listing on NYSE (FT)
Oaktree Capital Management is planning to list its shares on the New York Stock Exchange in a deal that would value the asset manager at between $8bn and $9bn, people familiar with the matter said. Oaktree, which manages $85bn, mostly in debt investments, listed shares four years ago on a quasi-public exchange set up by Goldman Sachs.

DSK Accuser Is ‘Afraid,’ ‘Overwhelmed’ (WSJ)
Investigators swabbed a sink and removed a section of carpet from the hotel suite where International Monetary Fund chief Dominique Strauss-Kahn allegedly assaulted a hotel housekeeper, a New York law-enforcement official said Tuesday, as a clearer profile began to emerge of the alleged victim. Her attorney [Jeffrey Shapiro] characterized her as a “simple woman, with little education” who is a single mother from Guinea. Mr. Shapiro said his client, a 32-year-old widowed mother of a 15-year-old girl, was granted asylum in the United States seven years ago from her native country of Guinea.

Fed seeks annual US bank stress tests (FT)
The Federal Reserve wants to subject US banks to annual capital tests, reserving the right to veto dividend pay-outs if they do not pass.

‘Gang of Six’ on verge of collapse as Republican Sen. Coburn withdraws (WaPo)
Since January, six senators have engaged in difficult negotiations and made painful concessions in a politically dangerous quest for something that has long eluded Washington: a bipartisan compromise to control the nation’s mounting debt. By Tuesday evening, however, the “Gang of Six” was on the verge of collapse. Sen. Tom Coburn (R-Okla.) withdrew from the bipartisan working group, saying the senators simply could not overcome the polarizing political pressure that each faces.

Senate rejects measure to end subsidies for big oil companies (WaPo)
A Democratic measure that would have repealed tax subsidies for the five biggest oil companies failed to clear the Senate on Tuesday, falling short of the 60-vote threshold needed to advance in a near-party-line vote.

Geithner Warns On Debt Ceiling, Talks IMF Crisis (DJ via WSJ)
In his first public comments since International Monetary Fund Managing Director Dominique Strauss-Kahn was jailed on sexual-assault charges, [Treasury Secretary Timothy] Geithner added that the institution should establish a plan to fill its leadership vacuum on an interim basis, given that the IMF chief was “not in the position” to make decisions during a critical time. In remarks to the Harvard Club here, Geithner cautioned the GOP leadership against tying their budget blueprint to the contentious talks to lift the U.S.’s $14.3 trillion debt ceiling.

Citigroup’s Gain on Mortgage Hedge Fund Jumps as Volcker Trading Ban Looms (Bloomberg)
Citigroup’s Mortgage/Credit Opportunity Fund climbed 16 percent in the first four months of 2011, almost doubling its pace last year, according to internal reports obtained by Bloomberg News. About 90 percent of the $395 million invested in the fund is the bank’s own capital, said a person with direct knowledge of the matter.

Dan Zwirn Seeks Comeback With Alda Three Years After Shutting Hedge Fund (Bloomberg)
Daniel Zwirn, the New York investor forced to shut a $4 billion hedge fund because of client withdrawals, is starting over with a new publicly traded fund that will be safe from redemptions. Zwirn will help manage a closed-end fund for Alda Capital Corp. that will lend to small and medium-sized companies, the Chicago-based firm disclosed in a regulatory filing this month with the Securities and Exchange Commission. Alda plans to raise about $50 million for the fund, according to the filing.

Morgan Stanley Sets Up Yuan Fund (WSJ)
Morgan Stanley said Wednesday it has set up a private-equity joint venture in the affluent eastern Chinese city of Hangzhou, launching its first yuan-denominated fund that aims to raise 1.5 billion yuan ($231 million).

Oyster Herpes in France Ravages Harvest (Bloomberg)
A deadly virus is stalking France’s coastline, killing at least 60 percent of the young oysters there since 2008…The virus is not just a blow to France, Europe’s biggest producer. The global industry, worth at least $3.3 billion in 2009, has been plagued by OsHV-1 in Ireland, England and Australia.



Article courtesy of Dealbreaker

Confident or arrogant? LinkedIn ups valuation to $4B

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linkedin-reid-hoffmanLinkedIn, a social network that connects professionals to help form new business contacts, increased the share pricing for its initial public offering tomorrow to between $42 and $45 — giving the company a valuation of around $4 billion — according to an updated filing with the Securities and Exchange Commission.

It was just 8 days ago that LinkedIn claimed a valuation of $3 billion in an amended S-1 filing with the SEC. The quick about-face to increase the company’s valuation could end up creating additional chatter about whether several Web 2.0 companies are overvalued. LinkedIn’s valuation is the first official record of the hyper-valuations many Web 2.0 companies like Twitter and Facebook have seen in recent years.

The company is looking to raise up to $217 million in its initial public offering by selling 4.8 million shares of common stock. Employees and other shareholders plan to sell around 3 million shares of LinkedIn stock as well — meaning nearly 8 million shares will be up for grabs for public investors. The latest high-profile tech stock to make its trading debut in the U.S. — Chinese social networking company RenRen — turned out to be a flop and has fallen below its IPO price of $14 to $12.73 after the company started trading earlier this month.

A number of highly successful Web 2.0 companies like Facebook and Zynga — and LinkedIn — have seen ballooning valuations as investors have rushed to snatch up as many shares as possible ahead of what could be some of the most high-profile tech IPOs to date. Facebook, for example, was valued at $50 billion after its most recent round of funding — though it is trading at a higher price than that on secondary markets.

LinkedIn’s shares will make their trading debut Thursday on the New York Stock Exchange (NYSE) under the ticker “LNKD.” It’s one of several high-profile tech initial public offerings that landed on the NYSE over the tech-heavy NASDAQ stock market, ending the exchange’s decade-long dominance over the tech IPO market. The NYSE has dueled with the NASDAQ stock market to attract high-profile tech IPOs, but it’s traditionally been a losing battle as the NASDAQ stock market regularly plays host to the largest tech companies in the world like Google and Apple.

LinkedIn, founded by Reid Hoffman (pictured above), is a business network that’s designed to help professionals connect with other potential business contacts and get a “warm introduction” through people in their network.

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Article courtesy of VentureBeat » deals

Write-Offs: 05.16.11

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$$$ Full IMF Complaint Against Dominique Strauss-Kahn (ABC)

$$$ IMF Chief Dominique Strauss-Kahn to Spend Night at Rikers Island Jail (ABC)

$$$ El-Erian: Strauss-Kahn Allegations Are Consequential for the Global Economy (PIMCO)

$$$ Merkel rejects Greek debt restructuring (FT)

$$$ Appaloosa Trots Away From Bank Stocks (MarketBeat)

$$$ IMF disbursing more loan money to Ireland (Reuters)

$$$ U.S. hits debt ceiling (Politico)

$$$ Treasury to tap pensions to help fund government (WaPo)

$$$ Demand for US debt falls amid Chinese sell-off (FT)

$$$ US budget deal costs $3 bln more in short term (Reuters)

$$$ Gross says PIMCO “never” short Treasuries (CNBC)

$$$ Yahoo: Bad Timing for Einhorn (MarketBeat)

$$$ Goldman Sachs Finds a Couple of Defenders (MarketBeat)

$$$ Google Makes $3 Billion Bond-Market Debut (Bloomberg)

$$$
Facebook Meeting With Banks on Possible IPO (CNBC)

$$$ Robert De Niro Dealing To Play Bernie Madoff For HBO Movie Of ‘The Wizard Of Lies‘ (Deadline)



Article courtesy of Dealbreaker

Yahoo: Alibaba Says Had To Make Alipay Change, Says WSJ

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After Yahoo’s (YHOO) shares dropped sharply yesterday following word that there was a restructuring of Chinese e-commerce venture Alibaba Group Ltd., in which Yahoo holds a stake, The Wall Street Journal’s Loretta Chao this morning reports that Alibaba executives are seeking to clarify the change.

Yahoo! Tuesday said that ownership of “Alipay,” a transactions unit of Alibaba, was switched to 100% ownership by a separate company owned by Alibaba’s CEO, Jack Ma.

Chao reports that Alibaba spokesman John Spelich said the change to Alipay ownership “was done last year in order to comply with rules issued by the People’s Bank of China called ‘administrative measures for the payment services provided by nonfinancial institutions’.”

Those rules require that “absolute controlling stakes of nonfinancial institutions must be domestically held,” Chao reports. Chao writes that it’s unclear if Yahoo!, and the other major investor in Alibaba, Japan’s Softbank, knew of the changeover of ownership last year. She notes that both investors are “in talks” with Alibaba about the matter.

Yahoo! shares today are up 32 cents, or 1.9%, at $17.52.

Article courtesy of Tech Trader Daily

Yahoo! Off 7% On Alibaba Restructuring

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Shares of Yahoo! (YHOO) are down $1.39, or 7.5%, at $17.16, perhaps reflecting the company’s notice in a regulatory filing last night that an aspect of its overseas investment is being restructured.

In its 10-Q filing with the Securities & Exchange Commission yesterday, the company said part of Alibaba Group Ltd., the China-based e-commerce venture in which Yahoo! holds a 43% stake, is being split off into a separate property.

As Yahoo! notes in its filing:

To expedite obtaining an essential regulatory license, the ownership of Alibaba Group’s online payment business, Alipay, was restructured so that 100 percent of its outstanding shares are held by a Chinese domestic company which is majority owned by Alibaba Group’s chief executive officer. Alibaba Group’s management and its principal shareholders, Yahoo! and Softbank Corporation, are engaged in ongoing discussions regarding the terms of the restructuring and the appropriate commercial arrangements related to the online payment business.

Alibaba, along with Yahoo! Japan, have been consistently seen as a goldmine for Yahoo! amidst the trouble in its core business. Hence, perhaps some volatility in the stock whenever there’s any perceived change in the nature of those investments.

I see nothing other than that to push the shares down sharply today — sharper, that is, than the broad market decline that’s going on this afternoon.

Article courtesy of Tech Trader Daily

Renren Rebounds, If Slightly

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Out of the gate, Chinese social networking operator Renren (RENN) is up 26 cents, or 1.5%, at $17.13, recovering from the 6.3% drop yesterday that followed a nearly 30% rise on Wednesday, the stock’s first day of trading.

Yesterday’s drop was noteworthy given that not many IPOs take such a hard fall on only their second day of trading. At one point yesterday, the stock was down as much as 14%.

Article courtesy of Tech Trader Daily

Yoku Drops 7%: Q1, Q2 View Beat; Plan For Follow-On Offering Weighs

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Shares of Chinese video hosting site Youku.com (YOKU), which has been billed the “YouTube of China,” are down $3.81, or 6.6%, at $53.79 after the company easily beat Q1 revenue estimates, but also said in a separate release that it intends to have a follow-on offering of its American Depository Receipts, in part to fund its operations and to increase the float, but also for pre-IPO investors to sell some of their shares.

The prospectus can be found here.

Youku’s Q1 revenue was up 63% at $19.5 million, beating the average $16.8 million estimate. EPS of 7 cents beat by a penny. The company forecast revenue for Q2 to rise 125% to 135% from the year-earlier period.

In the June quarter of last year, when Youku was still private, it made 71 million Renminbi for the quarter, according to page 93 of the company’s IPO filing. An increase of 125% to 135% would equate to 160 million Renminbi to 167 million Renminbi. That would equate to $25 million to $26 million at current exchange rates, which is ahead of the $23 million average estimate.

CEO Victor Koo said the company continued to expand its lead in China’s online TV market, with monthly unique visitors hitting the site from homes and offices rising 22 million from December’s level to a total of 231 million as of March.

Koo said the company was seeing increased use of its video feeds from tablet and handheld devices. He said the company plans to “invest aggressively in content, technology, product innovation and brand to capitalize on the growing market opportunity in front of us.”

Article courtesy of Tech Trader Daily

LinkedIn spurns tech-heavy NASDAQ stock exchange, lists with NYSE

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Could this be the end of an era?

LinkedIn, one of the highest-profile tech initial public offerings this year, indicated today that it will list its shares on the New York Stock Exchange (NYSE) rather than the NASDAQ stock exchange, according to an updated version of its S-1 filing with the Securities and Exchange Commission.

The NYSE has dueled with the NASDAQ stock market to attract high-profile tech IPOs, but it’s traditionally been a losing battle as the NASDAQ stock market regularly plays host to the largest tech companies in the world like Google and Apple. But recent high-profile tech IPOs indicate that is changing. The NYSE nabbed Chinese social networking site Renren last month. Pandora, an online radio station and another high-profile tech IPO this year, also said it would list its shares on the NYSE.

LinkedIn’s announcement also comes at a time when NYSE Euronext, the company that runs the New York Stock Exchange, is in a high-profile fight with NASDAQ OMX, the company that runs the NASDAQ stock market. NYSE Euronext is fighting off a takeover bid by its tech-heavy rival stock market. NASDAQ OMX said it is committed to making a deal worth $11.1 billion for NYSE Euronext.

The business-savvy social network will list its shares under the ticker “LNKD.” The company filed to go public in January this year to raise up to $175 million. The latest filing with the SEC also indicates that LinkedIn now has 100 million members, up from the 90 million it indicated in its last S-1 filing.

The updated filing also included some new information about its financial performance. The company brought in $94 million in the first quarter this year, up 110 percent from $45 million in the first quarter last year. It earned $2.1 million off that revenue in the first quarter this year, up 15 percent from $1.8 million in the first quarter last year.

LinkedIn is a business network that’s designed to help professionals connect with other potential business contacts and get a “warm introduction” through people in their network. The company said it had 990 employees at the end of 2010.

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Article courtesy of VentureBeat » deals

LinkedIn spurns NASDAQ, lists with NYSE

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Could this be the end of an era?

LinkedIn, one of the highest-profile tech initial public offerings this year, indicated today that it will list its shares on the New York Stock Exchange (NYSE) rather than the NASDAQ stock exchange, according to an updated version of its S-1 filing with the Securities and Exchange Commission.

The NYSE has dueled with the NASDAQ stock market to attract high-profile tech IPOs, but it’s traditionally been a losing battle as the NASDAQ stock market regularly plays host to the largest tech companies in the world like Google and Apple. But recent high-profile tech IPOs indicate that is changing. The NYSE nabbed Chinese social networking site Renren last month. Pandora, an online radio station and another high-profile tech IPO this year, also said it would list its shares on the NYSE.

LinkedIn’s announcement also comes at a time when NYSE Euronext, the company that runs the New York Stock Exchange, is in a high-profile fight with NASDAQ OMX, the company that runs the NASDAQ stock market. NYSE Euronext is fighting off a takeover bid by its tech-heavy rival stock market. NASDAQ OMX said it is committed to making a deal worth $11.1 billion for NYSE Euronext.

The business-savvy social network will list its shares under the ticker “LNKD.” The company filed to go public in January this year to raise up to $175 million. The latest filing with the SEC also indicates that LinkedIn now has 100 million members, up from the 90 million it indicated in its last S-1 filing.

The updated filing also included some new information about its financial performance. The company brought in $94 million in the first quarter this year, up 110 percent from $45 million in the first quarter last year. It earned $2.1 million off that revenue in the first quarter this year, up 15 percent from $1.8 million in the first quarter last year.

LinkedIn is a business network that’s designed to help professionals connect with other potential business contacts and get a “warm introduction” through people in their network. The company said it had 990 employees at the end of 2010.

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Article courtesy of VentureBeat » deals