In Private, Facebook Valuation Up 42%

5 Comments

Employee shares of Facebook are selling for $21 on SecondMarket, valuing the social network’s common stock at $9.5 billion, Bloomberg is reporting today. That’s up 42 percent in the past four months, which SecondMarket takes to mean that an IPO is nigh, but could also just reflect Facebook’s recent announcement that it’s cash-flow positive. And $9.5 billion doesn’t include the preferred shares issued to investors.

However, a recent report by Next Up Research (reg. req.) put out by a competing private company stock exchange, SharesPost, puts Facebook’s value much lower. Interestingly, it doesn’t use data from SharesPost’s own stock trades — though that may be due to the fact that the exchange’s last noted Facebook transaction is from August at $12 per share — but rather uses revenue projections, value vs. comparable companies and Digital Sky’s recent investment in the company (which included purchasing of employee stock). Those three methods give Facebook a total valuation of $5.48 billion, $5.07 billion and $6.5 billion, respectively.

5 Comments

Ed

Anyone remember Friendster, the one who started it all? Boy, I bet they sure wish they sold when they had the chance…

Liz Gannes

@bob – You’re right, that’s the issue with private markets. But the value of anything is defined by how much people are willing to pay for it, so…

bob

Where is any of this info validated other than people said this or that, what proof does anyone have that these trades actually took place? The other question is what size are these transactions 100 shares a 1000 how many? I will bet these will not be answered.

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