Xing to the eXchange


by Hans Bool - Date: 2006-12-06 - Word Count: 307 Share This!

Xing is going to the exchange. The IPO is planned for the seventh of December. This means that there already is a demand for the company's stock on the financial market. To predict the development of the stock price however would be speculative. Yet there are some indicators of a near future development of the stock.

There are many good reasons to be positive about the IPO of XING on the (New York?) stock exchange. First of all, Xing is a professional networking company and networking is hot. The main function of the internet is supporting the exchange of information and knowledge. Dedicated companies that operate in that field could count on future growth. Once the network function is supplied, organizations like Xing benefit from additional scale effects. As any other large site with a client base (Amazon) they are able to gain from adverts and other cross-selling business.

Disadvantages are that the professional market is often a lean-and-mean type of market. Information publishing or brokerage companies -- like Reed Elsevier and Wolters Kluwer - have not been the most profitable ones since the rise of the free information highway. Even though that knowledge seems to be associated more with the concept of knowing WHO rather than knowing WHAT there is an extra focus on these kind of networking organization. But how to capitalize this? The added value of information brokers (Reed Elsevier, Wolters Kluwer) is the additional quality in the professional (publication) market (law, accountancy, medicine, etc). The added value of being a member of Xing is much more difficult to estimate.

Although networking is hot, the professional market is quite serious and not too sexy. Most difficult to estimate would be the fact that only a small group (an organization of around 70 employees) is going to benefit from this IPO. What about those who exchange their knowledge for free?


Related Tags: ipo, xing

Hans Bool is the founder of Astor White a traditional management consulting company that offers online management tools. Have a look at some of our free management tools

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