LinkedIn Backers & Insiders Hit The Sell Button (LNKD, SAP)

LinkedIn Corporation (NYSE: LNKD) filed for a secondary offering on Monday evening for up to 8 million shares.  The company itself is offering 1,271,255 shares of Class A shares and stockholders are offering 6,728,745 Class A shares.

Underwriters in the group are Morgan Stanley, BofA/Merrill Lynch, J.P. Morgan, Allen & Company, and UBS.  The syndicate will be given an overallotment option of 1.2 million shares.

Bain Capital Venture Integral Investors is effectively selling its entire stake, Greylock Ventures is selling 10% of its stake, Bessemer Ventures is selling 10% of its stake, and several officers and directors are selling 10% of their stake.  SAP Ventures of SAP AG (NYSE: SAP) is selling one-third of its stake as well.

All you have to do is ask a simple question… Why wouldn’t these insiders and backers sell if they are freed up to do so with such huge gains?  LinkedIn shares are down almost 5% at $74.77 in pre-market indications but the volume is still extremely light.  The post-IPO range is $60.14 to $122.70.

JON C. OGG