LinkedIn shares skyrocket after flotation

LinkedIn began trading at 10am Eastern Time. Potential investors and fund managers watched, open-mouthed, as the LNKD share price shot up to over $90 before finally settling to $80 mid-morning.

The surge has already boosted founder Reid Hoffman from a mere millionaire to a bona fide billionaire. The company had conservatively priced its shares at $45 each ahead of the IPO, valuing his stake at $855 million. Hoffman now owns a stake worth £1.6bn.

This is big news for all firms in the social media space. Facebook, Groupon, Pandora and Kayak are all poised to IPO within the six months to a year; their FDs will be popping champagne corks this afternoon. And possibly accelerating due diligence to ride the wave.

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