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.
Joost-up and managing the hype
Mike Volpi has been on the job as CEO of Joost, the new online video network, for a few weeks. But already he’s got his mission statement down better than Terry Semel ever did at Yahoo (YHOO). (See this interview I did last summer with Semel to get a sense of what I mean.) “We want to transform the way people entertain themselves,” Volpi said last night at a party at the Academy of Television Arts & Sciences in North Hollywood, Calif. (A fairly serious guy, Volpi also began his remarks with a pitch-perfect zinger: “My staff has told me this will be my only opportunity ever to say, ‘I’d like to thank the Academy …’”)
If you know anything at all about Joost, you know it doesn’t suffer from ambition. Founded by the two guys who started Kazaa and Skype, Joost is one of scores of companies that are trying to be the next YouTube. And yet it’s gotten a higher profile than the others, even before officially starting its service. That’s due in part to its founders and partly to early investors like Skype funder Index Ventures (hey Danny!), CBS (CBS), Google (GOOG) and YouTube investor Sequoia Capital. Nabbing Volpi added yet more cred to Joost. He was a Cisco (CSCO) bigshot for years. (Read David Kirkpatrick’s overview of Joost on the day Volpi’s hiring was announced.)
Okay, so how is Joost doing? Well, it’s hard to say. The company is still in its testing phase. Volpi told me 700,000 users have downloaded the company’s player, a piece of software to watch videos on your computer. It has signed all sorts of deals with creative types — which is why it threw a party in La-La Land. And it’s working with Interpublic Group’s (IPG) Emerging Media Lab to let IPG’s advertising clients test how Joost slices and dices both programming and user data. In short, well-funded Joost basically isn’t going for the hard sell yet, either with advertisers (whom it’s charging only nominally) or with users, while it’s trying to see if they actually like the experience Joost is pushing.
Watching Joost must be what it was like when the cable networks got going: a new video experience with a splotchy menu of shows that only a few people were experiencing. Will it break out of the pack? Way too early to tell. At least Joost seems to know where it wants to go.
A company Sony should buy
I don’t often gush about products. I’m just not a gadget guy. I liken my knowledge of computer-related toys to my fluency in Japanese a decade ago: Pretty darn good compared to someone who speaks no Japanese; pretty weak compared to someone who does.
Anyway, I’ve just started using a product that is gushworthy. It’s called the Flip camcorder, and it’s made by a San Francisco technology company called Pure Digital Technologies. What’s so great about the Flip is that 1) it’s cheap; 2) the quality is darn good; and 3) it is brain-dead easy to connect to YouTube. In other words, for $120 or $150, you can get a really basic camcorder and then quickly post videos on the Web, as my fellow CNNMoney blog MediaBiz did recently. Trust me, it’s an instant grandparent pleaser. This product isn’t for the ultra-techy crowd. It’s for people like me, who haven’t gotten around to buying an expensive camcorder (I will) and spending hours editing videos.
As for the business, this is Pure Digital’s second product line, the first being a single-use (i.e., disposable, though the company works hard to recycle them) digital camera. The company is funded by Sequoia, Benchmark, Morgan Stanley (MS) (hey Mary … missed you at D!) and others. It’s already selling Flips at retailers like Best Buy (BBY), Target (TGT) and Costco (COST) and promises to add a bunch more. What Pure Digital has gotten right is incorporating seemless software into a small device that you’re happy to toss into your bag and forget about when you’re not using. It’s really similar, in fact, to how Apple (AAPL) built the iPod around its iTunes software. And it’s got me thinking, why in the world doesn’t Sony do this? And if it won’t, why wouldn’t Sony (SNE) buy Pure Digital?
By the way, to see the Flip in action, watch this short video of Pure Digital CEO Jonathan Kaplan talking about his own company:
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