If you spend some time trying to figure out who the big boys are on the inside “Linked -In” to the social media or networking bubble, one name comes up frequently — Reid Hoffman. Mr. Hoffman is the founder and chairman of LinkedIn and is currently a multi-billionaire on paper based on LinkedIn’s projected value and the number of insider shares he holds in the company.
But if you read through articles, it becomes clear that he is connected to Facebook, Groupon, Zynga, Yelp, and a host of other social media companies through Greylock Partners. And he has considerable money in the game or “the bubble”. The mainstream media paints him as an “angel investor”, “entrepreneur”, and “tech visionary”. I will play devils advocate and call him out as a legalized crook and Ponzi schemer concerned merely with enriching himself and his well-connected pals at the expense of the masses. The main stream media could be correct and I could be wrong, or the opposite could be true. But who is Reid Hoffman and what are his connections to the social media and networking bubble (Hoffman background)
Hoffman is worth billions via LinkedIn, but he also has cashed in on the recent Facebook IPO in the tune of at least $412 million bucks (who got richer on Facebook IPO) which is by far the majority of his holdings in the company. He has also liquidated $30 million in his own company LinkedIn post lock-up period, but of course he still has most of his billions still invested in the company. But, his executive team is cashing out huge portions of their cheap pre-ipo stock grants and becoming millionaires. How long will Hoffman hold on to his billion dollar paper value in the coming six months to a year? My prediction is that we will see him start dumping larger portions of his stock given the Facebook flop and his inside knowledge that LinkedIn is way over-valued. I could be wrong. But, given what I have read about the founders, executive teams and companies that he has supported financially (Facebook, Groupon, Zynga, and LinkedIn), and after observing these insider behaviors connected with these entities, I am at this point in time, comfortable with calling out Reid Hoffman as a mafia boss of the legalized crime syndicate.