Apparently there is a limit to Facebook’s rising valuation: Reuters (NYSE: TRI) cites five sources who say that a group of Facebook employees and early investors is trying to unload $1 billion worth of the company’s shares. They apparently tried to sell the shares at a price that valued the company at $90 billion but are now trying to sell the stock at a $70 billion valuation. That’s still well above the $50 billion valuation put on the social network when it raised money from Goldman Sachs and Digital Sky Technologies in January, but it represents a 40 percent, not 80 percent increase, in four months.
The Reuters story does not say who is selling, but AlleyInsider reported last month that co-founder Eduardo Saverin had sold $500 million of the company’s stock. VC firm Accel Partners was also reportedly unloading some of its holdings in Facebook earlier this fall. We’ve reached out to Facebook for comment and will update if we hear anything back.
I’ve been saying Facebook is on the road to becoming worthless for some time now…
http://mankabros.com/blogs/onmedea/2010/07/01/facebook-is-worthless/
I seriously can’t see how they can maintain growth. Costs are through the roof. Revenues are uncertain. It will be a slow painful crash.
Jill,
How do you really believe this? Especially almost a year after you thought $15m was a ridiculous evaluation. Now that its min. $50 and has only proven itself since then, how do you still maintain this ground? They are estimated to make $3b+ in advertising revenues. Zynga a company that runs off the Facebook platform is the most successful game company ever.
How are you honestly saying this?
They haven’t even unleashed Facebook credits.
60% of the people come back every single day. How is that not valuable?
Do you think TV commercials, billboards, and magazines are true value?
The real issue here is that people above 25 need to understand that the future in the next 20-30 years is not in their hands. So just because you can’t comprehend the value because your basic foundation and learning curve was in a completely different dimension than the children now are growing up in.
you are right this is very valuable. But the risk is it may not be Facebook that supplies this, the are very much at risk of something better or more trendy coming out.
This strikes me as more about insider liquidity than valuation…