Delaware Companies Shine

By Devin Scott Monday, October 3, 2011

An initial public offering, or IPO, is when a company first offers the sale of its stock to the public.  Doing an IPO is often called “going public”.  In 2010, 76% of all U.S. IPOs were by companies incorporated in Delaware.  This says a lot about the Delaware Division of Corporations and the strength of the Delaware legal system for corporations.

Read below about the success of two Delaware companies who recently went public:

LinkedIn:  This company founded in 2002 and formed here in Delaware reports more than 100 million registered users, in more than 200 countries and territories worldwide.

LinkedIn, a social media site formed in Delaware, said it sold its IPO shares for $45.  This price rose as much as 171 percent the first day and closed at $94.25.  LinkedIn, similar to Facebook but for business purposes, is a site which allows users to share a photo of  themselves along with a profile page to share additional professional details.  LinkedIn is used for professional networking rather than social networking.

Pandora, another Delaware company has also recently gone public.  From a sale price of $16/share, the stock went to a high of $26 and ended the day at $17.42.  The first day’s return was in the average range for IPO’s.  Pandora is an online radio company formed in 2000 in Delaware that allows users to choose the type of music that is played on their own customizable station.

Both Pandora and LinkedIn made less than 10 percent of their company’s stock available for IPO.  Experts say the launch day for both companies was a success.

If you’re planning to take your company public then Delaware is, hands down, the State where you want to form your company. The type of company you’ll need to go public is the Delaware General Corporation.

More information on why companies form in Delaware

To visit LinkedIn’s website:

To visit Pandora’s website:


*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.

More By Devin Scott
Leave a Comment
* Required
* Required, will not be published