InfoAnda - LinkedIn IPO likely a success, but risks real |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Neverland closes until after LA Jackson memorial | 4 July 2009
Obama says Pakistan internal threat grave | International | | 30 April 2009
Hamas sees more prisoner swap talks with Israel | 31 December 2009

Pakistan struggles to aid 1.5 million displaced | 21 May 2009

Forum Views () Forum Replies ()

Read more with google mobile : LinkedIn IPO likely a success, but risks real |

Edition: U.S. Article Comments (0) Video Global Technology Summit HTC to tap tablet boom with many models Nvidia head sees competition for iPad AOL says no thanks to private equity Orange backs Apple plan for smaller SIM card High costs may delay new wafer technology AOL expands local news network in U.S. Mobile generation upends tech AT&T plans consumer security service for 2012 ARM sees limited hit from quake, upbeat on prices Samsung sees better LCD performance Smartcard maker Gemalto bets on security Video: AOL’s Tim Armstrong talks tech Comment: Do you play online games? Follow Reuters Facebook Twitter RSS YouTube Read U.S. sues Starbucks for firing dwarf from barista job 17 May 2011 "Sperminator" Schwarzenegger scorned over love child 17 May 2011 UPDATE 1-Gingrich hits rough patch early in White House run 17 May 2011 Sex: Do international bodies look the other way? 1:00am EDT Sex: Do international bodies look the other way? 1:06am EDT Discussed 99 Texas county official says ”stupid” feds sparked fire 79 Israel-Palestinian violence erupts on three borders 65 Boehner says ready to cut budget deal today Watched Fire ants form rafts to defy floods Tue, Apr 26 2011 Boot camp for rebels in Libya Sun, May 15 2011 Making a case against Strauss-Kahn Tue, May 17 2011 LinkedIn IPO likely a success, but risks real Tweet Share this By Alina Selyukh and Clare Baldwin NEW YORK (Reuters) - An initial public offering by social networking firm LinkedIn Corp to raise about $341 million seems poised to be a stunning success, but it carries a number of risks that may shake up... Email Print Related News LinkedIn ups IPO range, stokes social media frenzy Tue, May 17 2011 Social network Viadeo shelves IPO plan Mon, May 16 2011 LSE, TMX Group results top forecasts Fri, May 13 2011 Germany, France propel euro zone; growth gulf widens Fri, May 13 2011 GM to invest $2 billion in 17 U.S. plants Tue, May 10 2011 Analysis & Opinion Tech wrap: Blame game at HP LinkedIn IPO recalls credit as much as dotcom boom Related Topics Technology Home » Hot Stocks » Asian Markets » Media » Related Video Celebrating the next netboom Tue, May 17 2011 A page from the LinkedIn website is seen in Singapore May 18, 2011. Credit: Reuters/Shahida Patail By Alina Selyukh and Clare Baldwin NEW YORK | Wed May 18, 2011 2:01am EDT NEW YORK (Reuters) - An initial public offering by social networking firm LinkedIn Corp to raise about $341 million seems poised to be a stunning success, but it carries a number of risks that may shake up investors in the future. The IPO is expected to price after the close of U.S. markets on Wednesday and start trading on Thursday. In the fervor surrounding the rush to the first major U.S. social networking company to become public, investors may overlook some risks that could sour LinkedIn in the future, analysts say. One of the biggest risks may be LinkedIn's gutsy bet on its future growth -- combined with an admission that it does not expect to be profitable in 2011 on a U.S. generally accepted accounting principles(GAAP) basis. "Frankly, they're a little bit arrogant saying, 'We're going to have a great IPO, but we're also going to lose money this year,'" said Francis Gaskins, IPOdesktop.com president. LinkedIn raised the expected price range of its IPO by 30 percent on Tuesday. At the midpoint of the new range, the IPO would raise $341 million and give LinkedIn a market value of $4.1 billion. No final decision has been made but the IPO is currently expected to price toward the upper end of the revised range, said a source who spoke on condition of anonymity. LinkedIn's net revenue grew more than 100 percent from 2009 to 2010, while the company ramped up its sales and marketing spending by 120 percent in the same period, according to a filing with U.S. financial regulators. After two years of losses, LinkedIn finally made money for its common stockholders in 2010 -- but then it was back to only breaking even in the first quarter of 2011. In the risk factors section of its prospectus, LinkedIn said the rest of the year could be the same, or worse: "Our philosophy is to continue to invest for future growth, and as a result we do not expect to be profitable on a GAAP basis in 2011," the company said. LinkedIn added that it expects its revenue growth rate to decline over time and its costs to increase. The risk factors section of any prospectus is designed to encapsulate worst-case scenarios. Furthermore, it is not uncommon for an unprofitable company to seek a public listing. But a profitable company flatlining or swinging to a loss in its first year as a publicly traded stock could prove an unwelcome surprise for investors betting on the booming growth of social media companies. Earlier this week, the chief executive of LinkedIn's French rival Viadeo told Reuters his venture would delay its IPO, in part because of concerns of having to answer to shareholders about profitability. Although investments toward future growth would give LinkedIn a springboard with which to compensate investors, the delay -- in a hot sector abuzz with new startups and bursting with copycats -- could prove riskier than it seems on paper. "There's a risk for people to become complacent about the technology company to own the space forever. There's always somebody new coming up with a better form of something, at a better advantage for the user," said IPOfinancial.com's David Menlow, reflecting on the hype around MySpace, shortly before the emergence of Facebook, which quickly shoved it aside. Another risk LinkedIn faces is its website being blocked, which would limit its user base and could curtail some of the potential growth so attractive to investors. The risk is especially real in China, where LinkedIn has more than one million users and its website has already faced a temporary disruption. INTERNET STOCK? Another peculiar fact about LinkedIn is that on some level it's not quite the Internet company most consider it to be. The Big Four web companies basking in the glory of skyrocketing valuations and the expectation of blockbuster IPOs -- Facebook, Twitter, Groupon and Zynga -- make most of their money through online advertising or Internet services. LinkedIn is an online platform but actually makes more money through so-called "field sales," or a salesforce directly soliciting customers, agencies and resellers. In 2010, 56 percent of LinkedIn's net revenue came from field sales. By way of comparison, only 44 percent of LinkedIn's net revenue came from online sales. "(Feet on the street) is an expensive sales force," Gaskins said. He added that almost half of LinkedIn's business comes from selling "hiring solutions," which help match companies and job-seekers, a space where LinkedIn could face tough competition from niche job-seeking sites and traditional recruiting firms. "It's a high wire act," Gaskins said of LinkedIn's longer-term prospects. "They might make it, but it's risky." (Reporting by Alina Selyukh and Clare Baldwin; Editing by Dhara Ranasinghe) Technology Home Hot Stocks Asian Markets Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Wednesday, 18 May 2011
Libya says hits a NATO warship shelling Misrata |
Pakistani forces kill five suspected suicide bombers |
Bahraini activist said threatened with rape: report |
Abbas urges U.N. recognition of Palestinian state |
Pakistani army: senior al Qaeda operative arrested |
Dmitry Medvedev could shed light on Russian election plans |
Dell raises 2012 outlook, stock rallies |
Apple plans smaller SIM card |
What's not to Like? Baby named after Facebook button |
Cyber-crooks eye Apple Macs with fake anti-malware |
HTC to tap tablet boom with many models |
Intel chief says won't use ARM to make chips |
Pirates of Caribbean turns 4, seek fountain of youth |
South Africans vote as toilet row grabs headlines |
Over 70 militants attack Pakistani security post, 17 dead |
Al Jazeera: Reporter freed after vanishing in Syria |
Egypt's army says has no plans to pardon Mubarak |
China denies it is conduit for North Korea-Iran weapons trade |
FCC asks Apple, Google to location-tracking forum |
Foxconn sees dramatic improvement in 2011 results, shares jump |
LinkedIn IPO likely a success, but risks real |
PopCap Games ready to be listed as early as Nov: CEO |
Sony defends response time to hacker |
Symantec looking to buy |
HP disappoints investors; Dell shines |
Hollywood stars turn out for farewell Oprah show |
Pete Townshend says 2012 memoir a rite of passage |
Schwarzenegger fathered child outside marriage |
Signing of Yemen political deal appears imminent |
Twelve dead in protests after two women killed in Afghan raid |
Medvedev keeps Russia guessing on 2012 election |
Tanks shell Syrian town as West increases pressure |
Japan PM: must review oversight of nuclear power |
Yemeni caught in Pakistan mid-level al Qaeda operative |
Queen revisits ghosts of Ireland's Bloody Sunday |
Al Qaeda names Adel as interim chief: Al Jazeera |
Tunisia demands Libya stop cross-border shelling |
Mobile hacking sets off security gold rush |
Angry Birds maker Rovio aims for IPO in two to three years |
Clearwire signs network deal with Ericsson |
LG Display, Samsung see depressed LCD market turning |
Eye on tech exports, Israel launches cyber command |
Director Trier shocks Cannes with Nazi, Hitler jokes |
Bids soar for princess's toilet seat wedding hat |
Sperminator Schwarzenegger scorned over love child |
Film of cosmic chaos, end of Earth wows Cannes |
Pirates of Caribbean turns 4, seeks fountain of youth |
Warm welcome at Cannes for Gibson's The Beaver |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01