LinkedIn is one of the world’s largest professional networking platforms, with over 850 million members across more than 200 countries and territories worldwide as of 2022. But which country actually owns and operates this massive social network? The answer lies in LinkedIn’s history and corporate structure.
LinkedIn’s Founding and Early History
LinkedIn was founded in December 2002 by Reid Hoffman, Allen Blue, Konstantin Guericke, Eric Ly, and Jean-Luc Vaillant. The company’s headquarters was established in Mountain View, California, United States.
LinkedIn operates via a website and mobile apps and initially focused on connecting professionals, especially those in the technology sector. The founders wanted to capitalize on the disruptive changes in the workforce and realization that people will have many different jobs over the course of their career.
The site officially launched on May 5, 2003 and within the first month already had over 4,500 members. The early growth was fueled by venture capital funding and LinkedIn’s skilled leadership team. Within the first few years, LinkedIn opened additional offices in Chicago, New York, London, Paris, Milan, Stockholm, Munich, Amsterdam, Barcelona, Dublin, and Tokyo.
LinkedIn’s IPO and Further Growth
On May 19, 2011, LinkedIn held its initial public offering (IPO) and became a publicly traded company listed on the New York Stock Exchange. Shares were initially priced at $45 but nearly doubled on their first day of trading.
This successful IPO provided LinkedIn with a huge influx of capital to continue expanding its platform and offerings. Within the first year as a public company, LinkedIn launched new products such as Company Pages, an improved mobile experience, and tools for students.
Membership growth accelerated rapidly in the following years. By April 2013, LinkedIn announced it had surpassed 200 million members. This figure doubled to 400 million members by early 2015. Expansion into China and other Asian markets helped fuel this rapid growth.
Key product developments during this period included the launches of Sponsored Updates advertising in 2012, a publishing platform for long-form posts in 2013, and video uploading support in 2014. LinkedIn was cementing its position as a versatile platform bridging social networking and professional needs.
Acquisition by Microsoft
In June 2016, Microsoft announced its intent to acquire LinkedIn for $26.2 billion in an all-cash deal. This remains one of the largest acquisitions in Microsoft’s history. The acquisition was completed in December 2016, marking a new chapter for LinkedIn.
Under Microsoft’s ownership, LinkedIn retained its distinct brand and product suite while gaining access to Microsoft’s vast resources. Over the next few years, Microsoft integrated LinkedIn capabilities across its suite of products like Outlook, Word, Teams, and Dynamics 365.
LinkedIn membership continued expanding rapidly, reaching over 675 million members by 2021. While the U.S. remains LinkedIn’s largest market, international growth has accelerated, especially across Europe, India, and Brazil.
Current Corporate Structure and Ownership
LinkedIn is currently 100% owned by Microsoft as a wholly owned subsidiary. LinkedIn maintains its own corporate headquarters and leadership team based out of California.
However, Microsoft now has full ownership of LinkedIn’s intellectual property, brand, products, and operations. Major strategic decisions likely require approval from Microsoft’s senior leadership.
Financially, LinkedIn’s results are reported under the Productivity and Business Processes segment of Microsoft’s business. In Microsoft’s fiscal year 2022 financial results, LinkedIn revenue increased 34% year-over-year.
While LinkedIn operates independently in many regards, Microsoft now has full control and ownership of the professional social networking platform. Any potential acquisition offer would need to go directly through Microsoft.
Key Facts About LinkedIn’s Ownership:
- Founded in the United States in 2002
- Went public via an IPO in 2011, listed on the NYSE
- Acquired by Microsoft in 2016 for $26.2 billion
- Operates as an independent subsidiary but is 100% owned by Microsoft
- Microsoft reports LinkedIn financials under its Productivity segment
- As of 2022, LinkedIn has over 850 million members worldwide
The National Identity of LinkedIn
While Microsoft now owns LinkedIn, the professional networking platform retains a strong association with its American roots. LinkedIn was founded, launched, and operated for 14 years as an independent company headquartered in Silicon Valley.
Many of LinkedIn’s longtime executives and employees are still based at the California headquarters. The company’s history and identity remain tied to the United States, despite its worldwide member base.
For regulatory and tax purposes, LinkedIn is an American company. Any legal proceedings or government oversight would treat LinkedIn as a U.S. entity.
Culturally, LinkedIn reflects the openness, entrepreneurial spirit, and ambition associated with American technology companies. The platform facilitates networking, self-promotion, and career advancement – pillars of working culture in the United States.
So while the ownership technically transferred to Microsoft, LinkedIn maintains its national identity as an American professional networking platform. The U.S. roots remain evident across LinkedIn’s brand, culture, and strategic vision.
The Global Nature of LinkedIn’s Business
At the same time, LinkedIn has evolved into a truly global platform. While founded in Silicon Valley, today LinkedIn has offices spanning 30 cities around the world.
Some of LinkedIn’s largest individual markets based on membership are located outside the U.S., like India, Brazil, the U.K., France, and Italy. LinkedIn is available in 24 different languages.
When designing new products and features, LinkedIn cannot focus solely on American professional culture. The platform must support networking and career norms across dozens of different countries.
LinkedIn’s workforce is also increasingly global and diverse. Only about 42% of LinkedIn’s employees are based in the United States as of 2021. The company emphasizes hiring engineers and product managers across strategic regions like Europe, Brazil, India, and Southeast Asia.
So while the U.S. remains the core market, LinkedIn relies on worldwide members and employees to evolve its platform. It must balance America-centric roots with the needs of professionals in every corner of the globe.
Conclusion
In summary, while founded and initially operated as an American company, LinkedIn is currently 100% owned by Microsoft after its $26 billion acquisition in 2016. However, LinkedIn still maintains leadership, product teams, and its headquarters in California.
Culturally and reputationally, LinkedIn remains tied to its Silicon Valley and U.S. origins. But the platform has also successfully expanded worldwide, localizing services and relying on international members and employees. LinkedIn straddles both its American foundations and its global audience.