LinkedIn plans USD1 billion stock offering
Last Thursday, LinkedIn Corp said that it would sell additional USD1 billion of its Class A common stock. This was after the Internet based company moves to strengthen the development of its products. The company also said that the move would allow it make more acquisitions.
LinkedIn shares rose to more than double this year. However, it plunged by 2.3% at USD240.49 following the second share offering announcement of the company last Tuesday.
LinkedIn had around USD900 million in cash and short term securities as of June 30. The company did not specify when the second offering was scheduled. The proceeds of the second offering would be used to expand and develop the company's products. A portion of the proceeds would also be used to fund international expansion and for other general corporate purposes.
According to LinkedIn, "We may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement our business, although we have no present commitments or agreements to enter into any acquisitions or investments."