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When LinkedIn was going public, what challenges did they face with the registration of the company?
What challenges did LinkedIn have with disclosures and compliance issues?
LinkedIn faced the problem of financial service disclosure and compliance requirements under SEC and FINRA guidelines because it was the first of the new generation social media companies to go public. LinkedIn needed a way to demonstrate authenticity and responsibility, and "making dynamic disclosures in two way communication channels." (Hartman, 2011). Initially LinkedIn did not determine the number of shares to be offered and the price range. In addition, LinkedIn updated documents to restate its 2006 and 2007 financial statements because of "a problem in its' financial reporting internal controls due to an ineffective financial statement closing and review process."(Ovide, 2011).
The company experienced tremendous growth, boasting 90 million members and a 19.4 ...
This solution discusses the challenges LinkedIn faced with registration of the company and with disclosure and compliance issues during their IPO. It includes references.