Adam Lashinsky's dispatches on finance from the West Coast
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November 28, 2007, 8:07 am

LinkedIn CEO: We’d only sell for “a helluva lot”

I sat down Tuesday afternoon in Mountain View, Calif., with Dan Nye, the newish CEO (he joined earlier this year) of LinkedIn. That’s the company that is like Facebook for grownups, a businessperson’s social networking site. Nye’s looking for press because LinkedIn plans to unveil some nifty new features on Dec. 10. (I got a look, but agreed not to divulge anything yet.) I was interested in hearing what he had to say, in part because of the rumors flying around that LinkedIn plans to sell the company early next year to News Corp. (NWS)

The buyout gossip began with an item last week in the UK version of TechCrunch. Never mind that LinkedIn founder Reid Hoffman (a made man in the PayPal mafia and a buddy of mine) categorically denied the rumor in the Daily Telegraph. Anything that suggests that Rupert Murdoch would expand his social-networking empire is sure to set tongues wagging. Breakingviews.com wrote an intelligent summary of why a LinkedIn acquisition would make sense, largely because of the opportunities to leverage LinkedIn’s tools with the Wall Street Journal readership.

Not surprisingly, Nye didn’t deny that News Corp. made an offer for his company. Instead, he said that when he joined the company he told the board — comprised of Hoffman, Sequoia’s Mark Kvamme and Greylock’s David Sze — that he was only interested in taking the job if the goal was to “go long.” But is he selling out anyway? “We’re excited about building this company,” said Nye. “It would take a helluva lot to get us off that path.” Does that mean $1 billion? “A lot more than that,” said Nye, who worked at Procter & Gamble (PG), Intuit (INTU) and Advent Software (ADVS) before joining LinkedIn.

LinkedIn clearly is playing to win. The company has mushroomed from 60 employees when Nye joined in February to almost 200 today. At the time, LinkedIn had 9 million members; today it has nearly 17 million. Nye predicted revenues will range from $75 million to $100 million next year.

LinkedIn has the virtue of having survived adversity. Before Facebook and MySpace existed — back when Friendster was hot — LinkedIn was just getting going. It’s still going. Independent or part of News Corp., it’s fun watching this plucky company succeed.

I wouldn’t pay jack for linked in because jack isn’t there.

Posted By Josh Bogie, Whelan TX : December 4, 2007 2:56 am

You could say that LinkedIn membership grew 500% in my office alone last week. That’s because all our our rookie salesmen troll the thing for leads. Our veterans checked it out and don’t waste their time on it. Its unimpressive by nearly any real metric.

Posted By Gary, Redmond, WA : December 3, 2007 1:01 am

We are seeing this with the fitness market with http://www.trainhero.com and http://www.sparkpeople.com

Posted By mike smith, los angeles, ca : November 29, 2007 8:32 pm

I’ve found that it is little more than a name-generating tool. How else would you get the name of the Project Manager working on IT infrastructure projects at a Fortune 500? Or some other person you’re trying to reach for whatever purpose.

http://www.harsharaghavan.com

Posted By Harsha : November 29, 2007 5:05 pm

Just more hot air… O some *new* feature, like what? Give them 20 of your friends email and enter to win a free hotair ballon ride? And you can bet that at Facebook or LinkedIn a high percent of those “memebers” are mostly, non-active, never go to the site, just signed up and have never been back people!

Posted By Randy Tucson,AZ : November 29, 2007 2:52 pm

As with all tech companies, tell us the profit not the revenue.

Hundreds of dotcom blowups had “revenues” of 300M+ and ended with nothing.

Tell us profit - don’t both with the revenue.

Posted By Allan Jackson, New York, New York : November 29, 2007 8:44 am

I agree with Yadgyu, There is absolutely no interest for LinkedIn to be another kinda “facebook”.
WSJ’s to-be-found linkage to LinkedIn would be great if they could make it without any Myspace’s interference.

Posted By Kamal, Casablanca, Morocco : November 29, 2007 7:25 am

Do you want to hire a professional who spends all his time at Linkedln in stead of workplace?

Posted By Sam,Cupertino,CA : November 29, 2007 12:01 am

“Is LinkedIn looking to provide certain components of its code to the industry similar to how FaceBook has been growing with developers?”

I certainly hope not.

LinkedIn is not about being the “it” site that many people will use. It should remain as closed as possible to maintain a sense of professionalism and authenticity. The last thing the web needs is another MySpace or Facebook. Those sites are for younger people who want to make friends and goof off. LinkedIn is for business people that do not want to deal with the hodge-podge nature of other social networking sites. I think that linking this site with The Wall Street Journal would be an excellent idea. LinkedIn and WSJ would compliment each other very nicely.

Posted By Yadgyu, Harkeyville, TX : November 28, 2007 6:40 pm

I could definitly see them introducing some business collaborative applications. They have the perfect base of potential users.

Posted By Allan, Minneapolis, MN : November 28, 2007 5:39 pm

Berkeley, your question:
“Those 17 million “members” — are they paying members (at around $250 per year) or does that 17M include all the freeloaders ”

Is clearly answered in the text:
“Nye predicted revenues will range from $75 million to $100 million next year.”

(And not all linkedIn revenue comes from subscriptions by the way)

Posted By Louis, Philadelphia PA : November 28, 2007 4:29 pm

LinkedIn has very strong collaborative components that will work great for a contractor that is looking to find another source of labor within a tight community. There are some issues that currently would prevent it from taking off. Is LinkedIn looking to provide certain components of its code to the industry similar to how FaceBook has been growing with developers? If so, I would thoroughly enjoy exploring the opportunities since I firmly believe in the LinkedIn, see opportunities clearly and have limited concerns that I know LinkedIn can easily work around with just a little partner assistance. Brian and the team of MyOnlineToolbox.com

Posted By Brian Javeline, Pompano Beach, FL : November 28, 2007 3:23 pm

I think they’re mostly freeloaders like you and me.

Posted By Ryan, Los Angeles, CA : November 28, 2007 2:28 pm

Those 17 million “members” — are they paying members (at around $250 per year) or does that 17M include all the freeloaders (like me) who have profiles and networks but haven’t paid up and therefore don’t get many benefits of the service?

As a small business, they might be able to get me to pay if I could be more confident of seeing some real benefits via, say, a free trial period.

Posted By Berkeley, Kalamazoo, MI : November 28, 2007 1:28 pm
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Adam LashinskyWall Street watchers think of capital markets and financial players out west as being on the "other" coast. That's not how it's viewed in the Pacific time zone. From the venture capitalists of Sand Hill Road to the bond kingpins of Orange County to the corporate finance department at a certain software company in Redmond, Wash., there's plenty going on "out there." Adam Lashinsky should know. A native of Chicago, he has covered West Coast finance for a decade, with an emphasis on money matters in Silicon Valley. If it involves money and it's happening west of the Mississippi, look for it in Go West.
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