It’s not just Facebook, now LinkedIn is looking to cash in on the inflated asset values for social networking sites which have been boosted by Goldman Sachs’ investment in Facebook.
In an SEC filing last week, LinkedIn said it was planning an IPO to raise up to $175 million. LinkedIn turned its first profit last year.
LinkedIn is expected to be the first of many social networking sites to jump on the asset bubble now being pumped up for the sector – excluding the sites of yesteryear – MySpace, Bebo, Friends Re-United etc – which are being spurned by their young customers who have found something they like better.
As a famous Rolling Stone article explained, to pump up an asset class and create a bubble valuation for it is a classic strategy of Goldman Sachs.
Meanwhile, folks, your super-sizzler favourite asset Facebook is valued at $82.9 billion on secondary exchange SharesPost Inc.
The opportunities for speculative investment will now multiply, with every social networking site subject to the hype-tide which raises all ships – except, of course, those already holed and sinking.