$1bn valuation for LinkedIn

Category: Web 2.0

June 20th 08, 08:58

Corporate networking community LinkedIn is now worth a reported $1 billion (£512 million).

A funding round led by private equity firm Bain Capital invested some $53 million into the website, leaving its total value at some £1 billion.

Businesspeople use LinkedIn to make contacts within their industry, browse job opportunities or communicate with colleagues.

The Financial Times described it has "one of the most eye-catching investments in the fast-growing social networking business".

In 2007, Microsoft purchased a $240 million stake in web-based social hub Facebook, valuing the site at some $15 billion.

The FT pointed out that LinkedIn differs from Facebook, in that it charges for some of its premium features.

According to LinkedIn's chief executive, Dan Nye, the portal is expected to generate between $75 million and $100 million in revenues this year.

Meanwhile, a recent Hitwise report named MySpace as the most popular social networking website in the US, taking a 72.72 per cent market share compared to Facebook's 16.24 per cent.

This news story was brought to you by Bluhalo, a leading UK digital agency.

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