Last time we checked in with SecondMarket in late January, Facebook shares had declined from the auction’s high point at $28.26 a share (a $70 billion + valuation) to $26.25 a share which means a $65.5 billion valuation going by its 2.5 billion shares outstanding. While at the time we had speculated about a peak and signs of a decline, shares are up 2.85% this week in SecondMarket’s 10th Facebook auction, at $27.00 a share and a $67.5 billion valuation.What’s changed (again)? Continued market exuberance as Facebook platform developer Zynga’s valuation slowly rises and reports of a Kleiner Perkins investment at $52 billion.
Guess we’ll have to get the interns to update our infographic.
Full SecondMarket mail below.
Subject: Privileged and Confidential – Participate in SecondMarket’s 10th Facebook Auction
To Facebook market participants:
Last week’s SecondMarket auction cleared at a per share price of $27.00. Attached is the detailed auction results report.
Like last week, the minimum sale and minimum purchase will be 10,000 shares. If you are bidding for fewer than 100,000 shares, you are required to open a brokerage account with SecondMarket. Please email XXXX@SecondMarket.com to receive a Brokerage Account Opening Form and return the completed form by Tuesday, February 22, 2011 at 5:00 PM EST.
Please email your completed Seller or Buyer Information Forms to fb@SecondMarket.com by Wednesday, February 23 at noon EST. To verify receipt of your order, you must receive a confirmation email from fb@SecondMarket.com. If you do not receive a confirmation email, your sell order has not been received by SecondMarket and may be excluded from the auction.
Next Week’s Auction Timeline:
• Friday, February 18 – SecondMarket will begin accepting Seller Information Forms, Buyer Information Forms and Brokerage Account Opening Forms
• Tuesday, February 22 at 5:00 PM EST – Brokerage Account Opening Form due, if bidding for fewer than 100,000 shares
• Wednesday, February 23 at 12:00 PM EST – Seller and Buyer Information Forms due
• Wednesday, February 23 at 5:00 PM EST – Participants informed of auction results
• Wednesday, February 23 at 8:00 PM EST – Transaction documentation distributed to buyers and sellers
• Thursday, February 24 at 5:00 PM EST – Wire of 100% of gross purchase price to escrow account due, if allocated fewer than 100,000 shares
• Friday, February 25 at 4:00 PM EST – Completed transaction documentation due from buyers and sellers
• Friday, February 25 at 7:00 PM EST – Notice sent to Facebook, Inc.
By reading this email, the recipient acknowledges and agrees that all of the information contained herein is confidential and that the recipient will keep this information confidential. The recipient further agrees that it will not copy, reproduce, or distribute this email in whole or in part.
Please contact us at fb@SecondMarket.com or XXXXXXXX if you have any questions.
Please note that the information in this email does not constitute an offer to sell to, nor a solicitation of an offer to buy from, nor shall any securities be offered or sold to, any person in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
Regards,
Terrence
| Website: | facebook.com |
| Location: | Palo Alto, California, United States |
| Founded: | February 1, 2004 |
| Funding: | $2.34B |
Facebook was founded by… Learn More
| Website: | SecondMarket.com |
| Location: | New York, New York, United States |
| Founded: | 2004 |
| Funding: | $15M |
Facebook ima let you finish but google had one of the best tech ipo's of all time
ReplyDeleteIf Quora is valued at $150B and Path at $100B then a $67.5B for Facebook is clearly justifiable.
ReplyDeleteI heard a similar story during the post-mortem analysis of the real-estate bubble in 2008. Quoting loosely:
ReplyDelete"People were not thinking. The implicit logic was, ultimately, something silly, like, if two houses cost twice what one house costs, then all three houses must have a fair price! Alas, it didn't turn out so."
If there's a bubble of online social community/network sites, it won't reflect just on Facebook's valuation, but all projects of a similar topic. The valuation may be right, or it may be a bubble that will crash.
But, I'll just say this: Zynga, of Facebook Farm/Mafia fame, valuates more than the entirety of Electronic Arts right now. Make your own conclusions.
Yes but at any moment, Zynga could pull away -- and has threatened to do that -- and would pull a lot of addicted people with it who would have their own social network just for those games without the other stuff.
ReplyDelete"Quora is valued at $150B and Path at $100B"
ReplyDeleteQuora valued $150,000,000,000 and Path valued $100,000,000,000 ???
so, why don't sell them to China and use that money to cut part of the huge US Federal debt? :) :) :)
It's not the right time. Next month, Path is launching "instagram for Path" and Quora is launching their mobile OS. That shall push valuations by another $50B or so.
ReplyDelete* A Like
* Reply
you're confusing "million" (M) with "billion" (B)
ReplyDeleteNo. I am not. If Keith Rabois invests in your startup, there is no Million. Only Billions.
ReplyDeleteAll thee valuations seem totally disconnected from the market. It's all a big bubble, a hype that at some point shall break. Sorry.
ReplyDeleteIf all these companies value so much, then how much do real companies like Google & Microsoft & Apple value? How much do value those companies whose products and services I really use, I really like and really help me be productive, eh?
When are you people going to report on the fact that this is all a bubble? I don't mean just a tech bubble like the dot.com bubble, I mean that this form of valuation isn't valuation because it's not public and open and valid with documentation like a real stock market and real IPO. It's just speculative stuff based on insiders' rumours.
ReplyDeleteHow on earth can stock that *the company gives itself to its own employees who are motivated to overvalue it* become some kind of marker of anything except conceit? Isn't this very, very basic stuff?
Why would VC cash infused into an empty vessel pouring into a void (a giant attention sucking platform with poor clicking on the ads and no real widgets to sell) be confused with real value? You know, real business stuff? I'm just NEVER getting this.
Too bold of a prediction to say Facebook is a fad, though my instincts tell me. 67 billion? Damn that is ridiculous I don't wish people harm but I would like to see Facebook fall so people will see the error in their speculative ways. 67 billion and climbing? What The...
ReplyDeletePeter Shen, founder koowie.com
Well on one hand people can say, "remember the Google IPO?" and how people were predicting a bubble back then. However the difference between Google and Facebook is Google was actually making records profits at the time. FaceBook is struggling with their own ad platform, and they seem to be making the most money from Zynga and social gaming.
ReplyDeleteI wouldn't go as far to say FB is a fad, but from a numbers perspective I cannot figure out how they got this valuation.
Facebook is the greatest company to exist since the British joint stock company traded in the South Seas in the 1700's. Or maybe it was the Dutch exploitation of tulips a hundred years before.
ReplyDeleteFacebook USD67b, Twitter USD10b... this is going to explode before 2012
ReplyDeleteno way. they have nothing that is inherently lasting (they have to keep it going day to day keeping up with the fads to keep my attention). i love FB but get real.. its a web site with lots of users. like myspace and yahoo and alta vista. they dont have a real platform (no real dev community). they dont build sticky software. they are a one trick pony like the ones before. this is not a microsoft (windows, office - no franchise). this is not cisco owning the network. this is not IBM. this is just a popular website............. poof
ReplyDeletewhat do you mean they don't build sticky software?
ReplyDeleteThere were statistics going around a while ago that said each user on average spends visits the site more than once a day and spends something like 20 minutes ot an hour on there each day.... how the hell is that NOT sticky?
Keeping going FB... the higher you go the more ridiculous it is once the decline in price starts so will FB.
ReplyDeleteWhat I don't understand is that companies like Google who have solid actual revenue and profits always get knocked for being a "one trick pony". They might be, although I believe Google has some chances for another trick, but then again none of them are a foregone conclusion.
ReplyDeleteAll that being said, why would the one trick pony that is Facebook that does NOT have strong revenue and profits be valued at close to 100 billion? I am not here to knock FB or what it is doing, just the crazy valuations people are putting on it.
only Apple has enough cash to buy Facebook
ReplyDeletemost likely a new social network will be the new "IT" sooner or later and facebook will fall like myspace did. technology is like fashion these days one day hot next day not.
ReplyDelete