04th September 2013 LinkedIn to Offload $1billion in Stock.

Professional network LinkedIn (LNKD) has announced plans to sell up to $1 billion in stock which has sparked rumors of a spending spree.


The company has given no firm reasons as to why it needs the money, already holding over $850 million in cash and not appearing to be in any sort of financial trouble. LinkedIn doesn't have a history of major aqusiations and its largest to date was the purchase of SlideShare for $119 million in 2012.


If LinkedIn is going on a buying run its high stock price may stand in the way of offering straight stock swaps. Floating at $45 in May 2011 shares are now trading at an all-time high of $246 and are up 110% on the start of the year. Any potential seller may prefer to take cash on the uncertainty of LinkedIn's ability to continue growing at that rate.


Most likely LinkedIn has nothing in mind for immediate purchase but is taking advantage of the demand for its stock to cash out and build up a reserve. It may also include some employees selling shares at over quintuple the float value, so expect yachts and home cinemas to be the only immediate acquisitions.


Shares dropped 2% in after hours trading on the back of the news but are still trading close to its all-time high.



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