LinkedIn is expecting to float on the stock market this Thursday. It is expected also that this will be the largest tech floatation since the tech bubble of 2000.
LinkedIn was in the news earlier this year after it was noted that it was considered a higher quality site by Google. Between February and April 2011 Google released a new and improved website ranking system codenamed Panda. This new system ranks websites based on their quality as well as many of ranking factors. LinkIn came out well according to web analysts, and started receiving more search traffic and as a result more users.
Recently LinkIn’s projected value has increased by 30%. Once LinkIn has gone public is is expected that others will follow suit. Many people are still waiting for the mighty Facebook to sell shares, although it is not clear why its founders wound actually need to raise any extra capital.
Other giant Internet brands that are being carefully monitors by shareholders and investors are Groupon , Twitter and Zynga. However, the wise money seems to all be going on LinkIn at the moment.
Unlike Facebook, LinkIn makes a large part of its revenue from premium members. It has recently launched its own advertising platform, much like the one Facebook uses, however uptake appears to have been slow so far. Most members are their purely for business networking, although it is certainly more “social” than it was a few years ago.
LinkIn still has not realised its potential. Whereas Facebook is making a fotune through advertising, LinkIn has built up a massive user base (around 1 million members) but so far has not come close to matching Facebook’s revenue.
The biggest risk for LinkIn today is Facebook. Facebook is building a more professional image with many companies using it to reach out and connect with their customers. LinkIn remains mostly a business network.
Of course, this is all likely to change in the near future as Google unveils its own Social Networking platform that is speculated to combine all of its current offerings, which could quite simply blow away the competition – both LinkIn and Facebook. Watch this space.