Interesting - the article at in the mint talks about the fact that with only 325 employees - LinkedIn is looking to clock revenues of between $70-$100mn this year. Even if you assumed that on average each employee earns about $100,000, and their other major costs are $10mn per year, and perhaps they spend another $10mn on marketing, throw in a few more $mn for 'other' expenses (these figures have no basis - its a baseless thought experiment) - we're talking about a cost base of $60mn all inc. If you assume that they land somewhere in the middle of their projections - $85mn in revenue - subtracting costs leaves a pre-tax profit of $25mn. If indeed it is valued at $1bn by some PE funds as the article describes, then that's a Price to Earnings multiple of 40 - not too high at all for a New Media company. Gautam Kshatriya gautam.kshatriya@moneyvidya.com http://www.moneyvidya.com/blog