Burda buys 25% stake in XING

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German media giant Burda has used its digital arm to purchase a 25.1% share in XING, the business social network that is biggest in Germany and competes with LinkedIn. The 1,323,041 shares were sold to Burda by Cinco Capital, the investment vehicle owned by the former XING co-founder Lars Hinrichs. Priced at €36.50 per share, the deal is therefore worth €48.3 million. This makes Burda Digital the largest shareholder in XING. Burda already has positions in Glam Media, the GameDuell startup and Zooplus.

Hamburg based business social network XING continued to grow revenue and EBIDTA in the first nine months of 2009 while profits were smaller than last year. Total revenues from January to September amounted to €33.2 million – or $49 million – up 32 percent from the same period last year (€25.1 million).

XING is floated on the German stock exchange and this new investment by Burda simply re-inforces XING’s profile as a German company. It’s tried to expand internationally, mainly in Asia, but it looks locked into its roots.

The question is, can it maintain its position in Germany forever? Asked recently if LinkedIn would buy XING to further it’s expansion in Europe co-founder Konstantin Guericke said “It’s just not necessary. LinkedIn grows “by the size of one XING every three months”.

  • Kevin

    Sounds like a good deal.
    Closing price was EUR 33.01. (10.6% markup)
    But then again the highest price over the last 52 weeks is EUR 39.8 (8.3% from peak valuation).

  • http://www.fundmesellme.com Tim

    This does seem to reinforce Xing as a predominantly German company. I wonder how it might influence their expansion plans versus LinkedIn?

  • http://wir-sprechen-online.com/2009/11/18/burda-goes-xing/ Burda Goes Xing « Wir sprechen Online.

    […] Burda Digital purchased a 25.1% share in Xing from Cinco Capital, becoming the largest shareholder; http://j.mp/25LFZj […]

  • http://www.nokia.com Sarik

    Congrats, Lars, Burda seems like a good fit for Xing

  • http://www.christianmeyer.net Christian

    Tim and Eric 4life!

  • http://sf.tastyr.om wayne lambright

    oh I thought you said http://ning.com

  • http://blog.firstmedia.de/2009/11/18/burda-beteiligt-sich-mit-25-an-xing/ Media-Blog » Blog Archive » Burda beteiligt sich mit 25% an XING

    […] beteiligt sich mit 25% an XING, das meldet Techcrunch: The 1,323,041 shares were sold to Burda by Cinco Capital, the investment vehicle owned by the […]

  • http://www.spirofrog.de Lebenslauf

    Great deal for the founder! The liquidity in the stock was not great, so a blocktrade was not possible!

  • http://www.spirofrog.de/blog/2009/11/xing-und-burda-das-ist-der-hammer/ XING und Burda - das ist der Hammer!!! | Spirofrog Blog

    […] Techcrunch […]

  • http://startupmeme.com/xing-gets-a-news-shareholder-as-burda-purchases-25-1-stake/ Xing gets a news Shareholder as Burda purchases 25.1% stake | Startup Meme - Technology Startup and Latest Tech News

    […] has got a new shareholder today as Burda, the German media giant bought 25.1% share. Xing as we have extensively […]

  • Eddy

    Sounds good. Reaffirms that not all of Burda’s digital investments are dogs.

  • http://www.socialnetworkingwatch.com/2009/11/burda-buys-25-stake-in-xing.html Social Networking Watch

    Burda Buys 25% Stake In XING…

    TECH CRUNCH – Nov 18 – German media giant Burda has purchased a 25.1% share in XING, the business social network that is biggest in Germany and competes with LinkedIn. The 1,323,041 shares were sold to Burda by Cinco Capital,……

  • Mario

    I kinda respect those Net operations. What bothers me is valuations of those pie-in-the-sky companies (for example Xing val. is 200M EUR). I mean what is their real value except for wasting user’s time and pretending to do something of a value to a visitor.

    They may may be popular during some period, but they may also easily go into obscurity fast. And what will happen with invested money? It will evaporate as fast as it was collected.

  • http://www.andrewmager.com Andrew Mager

    Zing!

  • Wolfgang

    How can one be a “former XING co-founder”…? Even if he would have left the company, he would still be co-founder, no…?

  • Conrad Seder

    Despite advertising, invitation specials and affiliate programs are registered in the last quarter, only 400 thousand new members of the Business Network, which is a decrease of over 5 percent. As many applications listed competitor, LinkedIn in just 5 days: http://blog.suxess24.com/2009/11/12/xing-verzeichnet-einbrueche-bei-mitglieder-registrierungen/

  • http://www.straubventures.com Alexander Straub

    Xing in my opinion is still in usability the world’s leading social network. LinkedIn is very very badly designed versus the elegant layout and functions on Xing. Xing should be LinkedIn but then in Europe we do not have the same bold funding strategies like in the US to make it really big. – still Lars, well done for building such an important company. Without it is a GEM.

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