Facebook valued at $80 billion on SharesPost

Facebook valued at $80 billion on SharesPost

Summary: A new transaction of Facebook shares on SharesPost gives the social networking giant a valuation of $80 billion.

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A recent private-market transaction on SharesPost, an online marketplace for private investments, has given Facebook a valuation of $80 billion. The auction consisted of 100,000 shares of Facebook Class B Common Stock priced at $32.00 apiece, according to an email SharesPost sent to All Facebook:

We would like to inform you that SharesPost's affiliated broker-dealer completed its auction of 100,000 shares of the Class B Common Stock of Facebook, Inc. on April 13th. The response of the SharesPost community to the auction was substantial and the auction was significantly oversubscribed. A clearing price of $32.00 was established at the auction. Members submitting Qualifying Bids at or above the clearing price will be contacted shortly with instructions on next steps for completing this transaction.

Because Facebook is not a public company yet, valuations are currently based off purchases and sales of shares on sites that allow trading of private companies, such as SharesPost. As a result, the valuations are always quite mind boggling.

Last month, Facebook was valued at $65 billion, when investment firm General Atlantic reportedly bought 0.1 percent of Facebook by purchasing roughly 2.5 million Facebook shares from former Facebook employees.

Two months ago, Kleiner Perkins Caufield & Byers (KPCB) invested $38 million in Facebook as part of its $750 million digital growth fund. The investment was only worth 0.00073 percent of the social network, but it still resulted in a valuation of $52 billion.

All these valuations should be compared to $50 billion, because this is the only number that Facebook officially confirmed. Three months ago, the company announced that it had raised $1.5 billion at a valuation of approximately $50 billion, but that it had no immediate plans for the funds and would simply continue to build and expand its operations.

The transaction consisted of two parts: in January 2011, Goldman Sachs completed an oversubscribed offering to its non-US clients in a fund that invested $1 billion in Facebook Class A common stock, while in December 2010, Digital Sky Technologies, The Goldman Sachs Group, and funds managed by Goldman Sachs, invested $500 million in Facebook Class A common stock at the same valuation.

Topics: Social Enterprise, Banking

Emil Protalinski

About Emil Protalinski

Emil is a freelance journalist writing for CNET and ZDNet. Over the years,
he has covered the tech industry for multiple publications, including Ars
Technica, Neowin, and TechSpot.

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8 comments
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  • $80 billions? Virtual Money is not REAL money

    Sorry, but anybody STUPID enough to believe that Facebook can be worth more than real companies is a complete moron.

    What "product" is Facebook "selling" that can achieve that ridiculous value? And please don't say ads because Google has 1 million times more ad exposure than Facebook and they don't claim 1M times that ridiculous value.
    wackoae
    • RE: Facebook valued at $80 billion on SharesPost

      @wackoae and you are worth how many million and what investment firms base their buying decisions on you advice?
      SharkeyNZ
      • It's called common sense

        @SharkeyNZ This is the same kind of nonsense that caused the internet bubble last time. Until they can show a monitization of the asset, it's all questionable speculation.
        happyharry_z
    • RE: Facebook valued at $80 billion on SharesPost

      how does facebook actually make money? I mean how did this people behind facebook got rich?

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      phil.hartman79
  • See Wikipedia Pump and Dump

    http://en.wikipedia.org/wiki/Pump_and_dump
    guihombre
  • RE: Facebook valued at $80 billion on SharesPost

    One word comes to mind: Bubble

    But I have to admit, quite impressive for a college project.
    UrNotPayingAttention
    • RE: Facebook valued at $80 billion on SharesPost

      @chmod 777
      Bubble 3.0
      Pump and Dump 3.0
      MySpace 2.0
      Financial Market Mechanics Hack -- by bypassing regulated market firewalls.

      I bet the financiers are risking OTHER's peoples' money when they buy into it.

      Not enough downside to the APEX risk takers who may likely cause negative consequences for large numbers of other people... as usual.
      voltrarian
  • RE: Facebook valued at $80 billion on SharesPost

    goood deal, that's a lot of money!

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