SAN

The Pak Banker - - COMPANIES/BOSS -

FRAN­CISCO: LinkedIn Corp Ex­ec­u­tive Chair­man Reid Hoff­man lost al­most half his $2.8 bil­lion for­tune on pa­per Fri­day as shares of his so­cial me­dia com­pany suf­fered their largest drop on record. He was not alone in tak­ing heavy losses. Other ex­ec­u­tives at LinkedIn, some at busi­ness an­a­lyt­ics com­pany Tableau Soft­ware Inc, and a num­ber of the com­pa­nies' ven­ture cap­i­tal back­ers also took losses run­ning into tens of mil­lions of dol­lars as both stocks tum­bled on dis­mal fi­nan­cial out­looks. It was a hum­bling mo­ment high­light­ing the per­sonal ex­po­sure many tech­nol­ogy lead­ers and ven­ture cap­i­tal­ists face as Wall Street re­assesses their value at an un­cer­tain time for the sec­tor.

Sil­i­con Val­ley-based LinkedIn's shares closed down 43.6 per­cent at $108.38 on Fri­day, af­ter hit­ting a three-year low, fol­low­ing a sales fore­cast well short of an­a­lysts' ex­pec­ta­tions. Shares of Seat­tle-based Tableau Soft­ware Inc, a busi­ness an­a­lyt­ics tools com­pany, fell 49.4 per­cent to $41.33 af­ter cut­ting its full-year profit out­look. As a re­sult, LinkedIn's Hoff­man lost $1.2 bil­lion from his value on pa­per on Fri­day, slash­ing his stake to $1.6 bil­lion, based on his hold­ings de­tailed in a fil­ing with se­cu­ri­ties reg­u­la­tors from March, which the com­pany said was the most up-to-date. LinkedIn's Chief Ex­ec­u­tive Jeff Weiner saw the value of his stake fall by $70.9 mil­lion to $91.5 mil­lion. At Tableau, the value of Chief Ex­ec­u­tive Chris­tian Chabot's stake was slashed nearly in half to $268 mil­lion, based on his hold­ings in a fil­ing with se­cu­ri­ties reg­u­la­tors in March.

Be­sides Hoff­man and Weiner, sev­eral ven­ture cap­i­tal­ists who sit on LinkedIn's board and own stakes in the com­pany suf­fered sub­stan­tial losses. Michael Moritz, the chair­man of Se­quoia Cap­i­tal who owns more shares than any in­di­vid­ual in­vestor be­sides Hoff­man and Weiner, lost $56 mil­lion as his stake's value shrank to $72.8 mil­lion. David Sze, a man­ag­ing part­ner at Grey­lock Part­ners, saw the value of his stake slide to $5 mil­lion af­ter los­ing $3.9 mil­lion on Fri­day. Ven­ture cap­i­tal firm New En­ter­prise As­so­ciates lost big in the rout at Tableau. Part­ners Scott San­dell and For­est Bas­kett each lost more than $80 mil­lion on Fri­day as the value of their hold­ings dropped to less than $85 mil­lion each. Tra­di­tional as­set man­agers also took big hits, with T Rowe Price As­so­ciates Inc los­ing $845 mil­lion on LinkedIn, in which it is the top in­sti­tu­tional share­holder, and Van­guard Group Inc tak­ing a $137 mil­lion hit on its Tableau bets, ac­cord­ing to Thom­son Reuters data cur­rent as of Sept. 30, 2015.

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