Linkedin Inc

In: Business and Management

Submitted By withnmyself
Words 655
Pages 3
Reid Hoffman founded Linkedin, Inc. a social networking site in 2002 for professionals to network; however, Reid also had prestigious co-founders where on the journey with him. The company was incorporated in Delaware in March 2003 under the name LinkedIn, Ltd. and changed their name to LinkedIn Corporation in January 2005. Dan Nye was hired as CEO, but only stayed there 2 years and Deep Nishar was hired as VP of products, who is a form Google executive. This company client list was very diverse ranging with professionals from over 200 different countries along with executives from every 500 company (money.cnn.com). Hoffman learned the ropes from the best like Apple and Fujuitsu, so that he could launch his company properly. Hoffman actually financed the start-up of his company his self from the sale of his Paypal to eBay.

The cornerstone of LinkedIn’s business strategy was to focus on the members first. They provided the majority of their solutions to their members at no cost. With the belief that this approach provides the best way to continue to build a critical mass of members, resulting in beneficial network effects that promote greater utilization of our solutions, higher levels of engagement and increased value for all of our members. Hoffman strategically planned each step to grow LinkedIn, in 2005, he launched 3 streams of revenue ~ job listings, subscriptions, and advertising.

In 2011, LinkedIn decided to submit an underwritten IPO as a measure to raise additional capital to fund further expansion and general corporate purpose, along with capital expenditures. The company also proposed the possibility of using some of the profits for acquisitions in complementary businesses, technologies or other assets. The founders felt that the social media market was strong and they needed to capture investors now before other well-known social media…...

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