Friday, August 5, 2011

Did LinkedIn?s IPO Open the Market or Close It for Anyone Under a $5 Billion Valuation? (TCTV)

Screen Shot 2011-08-05 at 6.40.31 PMA few weeks ago I was meeting with Peter Thiel and that pesky question of whether we're in a bubble or not came up. In a debate both sides are getting bored with, Thiel made a point I hadn't heard: That LinkedIn's IPO wasn't some Netscape moment that opened the markets up for everyone else. In fact, he argued, it was the opposite. LinkedIn showed that you can have a compelling IPO and get an insanely high P/E if you're a 10-year-old, profitable company, growing revenues at more than 100% a year that can command a $5 billion-plus valuation. That, he argued, is what the market wants right now, and those companies are in short supply. In our final segment with LinkedIn CEO Jeff Weiner I asked him his view on what his company just did for Silicon Valley: Open the markets or close them for all but the big five or so private giants?

Source: http://feedproxy.google.com/~r/Techcrunch/~3/YMGhcqlXxGY/

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