
LinkedIn files for $1 billion stock offering - antr
http://www.sec.gov/Archives/edgar/data/1271024/000104746913008826/a2216551zs-3asr.htm
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antr
On an offering like this I always like to look at the use of proceeds, which
is the argument (investment thesis) used with investors to try and convince
them to subscribe to the offering. In this case they are pretty vague:
"increase our financial flexibility and to further strengthen our balance
sheet".

Still, "international expansion" and "acquisition[s]" are mentioned.
Nonetheless I believe they will be a bit more explicit when meeting funds and
investors during bookbuilding.

One final thought: LinkedIn's share price is an all time high, with no
fundamentals to support it. This to me is a signal that management believes
that share price has peaked (or is about to) and now is the right time to fill
the coffers with cash with minimal shareholder dilution. Good move, lets see
how the market plays it.

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eigenvalue
Well then, management is acting totally rationally and are being good stewards
of capital. Hopefully they will be as diligent with share buybacks if the
situation ever reverses itself.

