Elvis Costello at Apple by Stephen Lam of Reuters

peHUB Second Opinion 9.10

Second Opinion has news about Apple’s $99 iPhone, Intel building tiny chips for wearable devices, Microsoft shareholders pushing for a turnaround expert to replace Ballmer, and an Elvis Costello sighting in Cupertino, California.

The World, And Facebook, According To Reid Hoffman

Facebook stock is likely an attractive long-term buy, Y Combinator might be seeing stress signs from its expansion, and Greylock Partner’s Discovery Fund is now three-quarters through its $20 million in capital. So says Reid Hoffman.

Serial Entrepreneur Josh Silverman Heads to American Express

Josh Silverman has just been named head of American Express’s U.S. consumer services unit, which manages consumer cards and travel services. A repeat entrepreneur who, at 41, has already made more career moves than most people in their lifetimes, Silverman is joining American Express from Greylock Partners, which brought him on as an entrepreneur-in-residence last […]

Slideshow: Top 10 Biggest Winners in LinkedIn’s Moon-Shot IPO

Remember when I speculated that the LinkedIn IPO might not make Reid Hoffman a billionaire? Open mouth, insert foot. With LinkedIn’s initial public offering today, Herr Hoffman is a billionaire two times over (at least at LNKD’s intraday share price of more than $100).

But the LinkedIn co-founder isn’t the only one who has made out like a bandit in the IPO. Four venture firms — Bain Capital, Bessemer Venture Partners, Greylock Partners and Sequoia Capital — as a group hold shares worth in excess of $4 billion.

Following is a slideshow of the top 10 biggest winners in the IPO — based on LNKD’s price of $107.00 per share at 12:27 p.m. EDT. Given that the stock zoomed from an opening price of $80 to as much as $122.70 today, it is anyone’s guess as to where it will finally close at the end of the day. Still, that won’t affect our rankings.

Video: 1 on 1 with Reid Hoffman, the Mastermind Behind LinkedIn

LinkedIn’s IPO was the big story Wednesday, and it promises to top the news again Thursday when its shares start trading on the NYSE. The company’s bankers priced its shares at $45 apiece — the top of their range, and much higher than the $32 to $35 range anticipated just a week earlier — giving […]

LinkedIn’s Dual Stock Structure Doesn’t Seem To Hold Back Investor Interest

LinkedIn sought to capitalize on the pent-up demand for social media companies by announcing Tuesday that it would boost the offering price of its shares by 30%, implying a market capitalization of more than $4 billion. Shares of the social networking site for business professionals are expected to begin trading on Thursday at an offering […]

Social Scene: Khosla to Give Away Half of Fortune, Kvamme Moving to Columbus (Huh?), Bussgang Hangs with SEAL Team 6, More

In this week’s Social Scene, Eric Schmidt is building fancy new digs for his personal VC firm; Joanna Rees has convinced Reid Hoffman, Marc Pincus and others to back her bid to be mayor of San Francisco; Vinod Khosla says he will donate half of his fortune to charity; Mark Kvamme is moving to Ohio (seriously!); Jeff Bussgang hangs with the famed SEAL Team 6, Robert Simon, Eric Wright and Katja Gehrt all have birthdays coming up, and more.

Schmidt in building mode

Onetime Google CEO Eric Schmidt is building out the “entire top floor” of a building in downtown Palo Alto, Calif., for his personal investment firm, Tomorrow Ventures, reports Peter Delevett of the San Jose Mecury News.

Delevett spoke to a commercial real estate broker who speculated

Horowitz, Hoffman On Technology Shifts And Innovation

The next big technology shift is right around the corner. We just don’t know what it is. Or better said, we don’t know its consequences. That’s what makes predicting the future difficult and why Ben Horowitz, general partner at Andreessen Horowitz, and Reid Hoffman, partner at Greylock Partners and executive chairman of LinkedIn, deserve credit […]

Top 10 peHUB Posts This Week

Want to catch up on what your colleagues found most interesting on peHUB over the past seven days? Here are our posts with the most pageviews from Jan. 28 to Feb. 4:

1. The House That Sean Parker’s Facebook Money Just Bought – by Connie Loizos, posted on Jan. 31.

2. Insight Venture Partners Raises One *Billion* Dollars – by Connie Loizos, posted on Jan 31.

3. Private Equity at Davos: What They’re Saying – by Gregory Roth, posted on Jan. 31.

4. No Respect for “Most Respected VCs” List – by Lawrence Aragon, posted on Feb. 3.

5. Jefferies Ousts Asset Management Bankers – by Luisa Beltran, posted on Feb. 1

6. Why Is Accel Ramping Its Cleantech Effort, While Others Seem To Pull Back? – by Mark Boslet, posted on Jan. 28.

7. Tony Conrad: If You Sell Your Startup, Don’t Be a Punk About it Afterward – by Connie Loizos, posted on Feb. 4

8. Maybe Reid Hoffman Won’t Be an Instant Billionaire – by Lawrence Aragon, posted on Jan. 27

9. Lots of Demand for EnCap’s $3.5B Pool, But Fundraising Not So Easy – by Luisa Beltran, posted on Feb. 1

10. LinkedIn: One Class of Stock Too Many – by Connie Loizos, posted on Feb. 3

6 Comments

Maybe Reid Hoffman Won’t Be an Instant Billionaire: Updated

Am I the only one who was disappointed with LinkedIn’s financials when it filed its S-1 today?

The first thing I did when I opened its S-1 was to look at the stock holdings of Reid Hoffman (pictured), its founder. Wow, I thought to myself, Hoffman owns about 19 million shares, making him the company’s largest shareholder, with a 21.4% stake. Assuming – conservatively, I thought – the stock goes to 100 bucks within six months, Hoffman is sitting on just under $2 billion. (Note that LinkedIn has not priced its shares yet.)

The company’s VC backers would also make a mint under my initial thinking, most notably Sequoia Capital, with 16.8 million shares, or an 18.9% stake; and Greylock Partners (where Hoffman is a general partner), with about 14 million shares, or a 15.8% stake. (Bessemer Partners holds about 4.6 million shares, or a 5.1% stake.) (See table below.)

Then I looked at LinkedIn’s financials and I felt deflated.

16 Comments

Kegs, Schmegs. Pick Up the Pace, LinkedIn

Reid Hoffman is known for many things, including founding LinkedIn, popularizing angel investing, becoming a venture capitalist at Greylock Partners, and having a giant brain. But he can also be conservative. For example, despite years of pleas from users and LinkedIn’s board members to add photos to the site, Hoffman refused, arguing that they could […]

VCs Look Poised to Gain Share in Early Stage Deals

Listen to Goodwin Procter Partner Jonathan Axelrad tell it and it is easy to draw the conclusion that venture capitalists will regain early stage ground from angel investors. Axelrad, a 20-year vet of working in the venture capital industry, says traditional VCs appear to be scrambling harder now for early and seed stage deals than […]

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