The employees at European Auto Works in Sunnyvale remember the lean times from 2008 to 2010 very vividly. So, they're thrilled to hear that LinkedIn will be expanding just a couple of doors down from their shop. "People who work in high tech tend to drive nice cars, German cars, and that's what we specialize in," Cliff Greenman says. "So, it's a dream come true."
LinkedIn has signed a lease for a Sunnyvale property through 2026. The property can hold up to 3,000 employees. The people of Sunnyvale aren't the only ones who are excited. High-tech insiders say this is good news for all of Silicon Valley. "LinkedIn coming in, as strongly as they have been and showcasing solid growth, that just means that there is strength in the Valley. I hope it continues," says technology analyst Robert Enderle.
A LinkedIn spokesperson said they need the additional buildings to accommodate their growth. Profits this year were in the millions of dollars but next year, they're expected to be more than $1 billion. Their success comes as another social networking company has had a rough time since becoming a public company. However, analysts don't think LinkedIn will be another Facebook.
"They really have a focused approach in a very narrow industry segment. Facebook's trying to be social networking for everybody. LinkedIn's trying to be social networking for business, and that focus has allowed them to showcase, perhaps, a bit better growth. And also, recognize they really weren't as overhyped as Facebook is," Enderle says.
LinkedIn is based in Mountain View now and will remain there. They are only expanding, not moving. The company will need to do some construction first, so it will not be moving in for another couple of years.