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CHICAGO, Jan. 6, 2014 (GLOBE NEWSWIRE) --
Professional Diversity Network, Inc. (Nasdaq:IPDN) announced today that it has released an open letter to stockholders from the Chief Executive Officer, James Kirsch. In it, Mr. Kirsch discusses the impact of recent events, and details the company's core operating strategies and anticipated business growth catalysts. Please see the full text of the Mr. Kirsch's letter below:
Recently, Professional Diversity Network, Inc. announced that LinkedIn Corporation ("LinkedIn") provided written notification to the company of its decision to terminate the Diversity Recruitment Partnership Agreement dated November 6, 2012 with the company (the "LinkedIn Agreement), effective as of March 30, 2014, and as a result, LinkedIn will no longer be a reseller of the company's diversity recruitment products and services.
LinkedIn's notice of termination did not provide a reason for termination. To date, we believe we had an excellent professional relationship with LinkedIn. Throughout the past year, we believe that we had positive and productive interaction with LinkedIn, which gave us confidence that LinkedIn was committed to our alliance for the long-term.
When we entered into the LinkedIn Agreement, our company's anticipation was that LinkedIn would generate approximately $50 million of revenue from the sales of our products and services in the near term, while at the same time providing valuable career opportunities to millions of diverse job seekers who visit our professional networking sites for Veterans, Disabled Persons, Women, Hispanics, African Americans, the Gay Community and Asian Americans. We believe that the LinkedIn Agreement contains economic terms providing for mutual success at the sales levels contemplated.
We anticipate that the end of our reseller relationship with LinkedIn on March 30, 2014 will have a negative revenue impact on the company in the near term. LinkedIn has been a key strategic ally to the company and our involvement with their team has expanded our reach, enhanced our profile and helped to educate recruiters about the value of Professional Diversity Network.