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Updated. LinkedIn’s huge debut today may have left some money on the table for initial investors, but it was still very lucrative especially for founder Reid Hoffman, who is now worth $2 billion more based on a market cap of $10 billion. With shares jumping from $45 at its opening to well past $100 and trading still moving, Hoffman could end up sitting pretty, although we’ll have to see where it all ends up.
Hoffman, the largest shareholder, leads a parade of investors who stand to be paid off for their stakes in the company. CEO Jeffrey Weiner is now worth $407 million for his shares while CFO Steven Sardello and SVP of Products and User Experience Dipchand “Deep” Nisharis are $107 million and $53 million richer (on paper) today respectively.
Among investors, Sequoia Capital’s shares are worth $1.8 billion, while Hoffman’s Greylock Partners’ stock is worth $1.5 billion at a market cap of $10 billion. Bessemer Venture Partners could get $484 million from its shares if it were allowed to trade them today. However, investors must wait for the lock-up period to end before they can sell their shares, so while this debut will raise more questions about overheating in the tech sector, there’s still time for their wealth to slide.
UPDATE: Shares of LinkedIn finished the day at $94.25 a share, up 109.4 percent, giving the company a market cap of $8.9 billion. That shaved off a bit from the value of shares for Hoffman and other employees and investors. Hoffman’s shares are worth $1.8 billion, shy of $2 billion but not bad at all. Other investors also saw their shares go down in value about 10 percent from when the company hit a $10 billion valuation in the afternoon. Now, let’s see how the company performs with all the IPO excitement in the rear view mirror.