LinkedIn looks at bank account, thinks: We'll raise one Instagram*
* That's $1bn, in freshly sold shares, ploughed straight into the biz
LinkedIn says it will sell off an extra $1bn worth of stock to raise funds to buy new systems, tout better services and potentially snap up other firms.
The social network for the gainfully employed hasn't said when it expects the sale to take place. The website had around $900m in cash and short-term investments as of the end of June.
In a statement, the company said the dosh injection - equal to what Facebook paid for Instagram last year - would be earmarked for product development and expansion and acquisitions and investments.
Shares in the firm dropped 2.26 per cent to $246.13 apiece in premarket trading on the New York stock exchange this morning, following the announcement late yesterday.
The fresh stock offering would sell about 4.2 million shares in the firm, upping its total share count, in both Class A and B stocks, to approximately 116 million. The new stock is all Class A, which carries one vote per share as opposed to B stock, which gives ten votes. ®