Facebooks Latest Valuation: Less than $5B
July 14th, 2008
If youve forgotten, just nine months ago, Microsoft purchased a 1.6% stake in Facebook for $240 million. Doing the math from that......the total value of Facebook last October was $15B.
But apparently this possibly-soon-to-be-recession-(though-technically-still-not,-people!) has really hurt the social utility. Rumors are circulating on and that Facebooks current value is less than $5B"and as low as $3 or $4 billion.
SAI cites rumors appearing in their comments for weeks that Facebooks value is plummeting"and, more importantly, a source who was offered a 0.25% stake for $12.5M just two months ago. Once again turning to our trusty, rusty algebra, that gives a more recent total value of $5B.
Even more damning, Mike Arrington says that Bill Dagley, the managing director of a fund of high value investors (you know, VCs), is rumored to be shopping around some discount Facebook shares as well:
"Weve been forwarded one email conversation from a source, where Dagley asks if theyd be interested in buying shares of Facebook from current holder? Another person who was approached said the asking price was $3-$4 billion. A third source says the total amount of stock being sold is around $30 million."
"The seller was never disclosed, but its likely a current or ex-Facebook exec who wasnt required to sign special agreements with investors during the venture rounds. That likely means they can theoretically sell their stock once its vested and paid for."
This news comes just days after a court ruled in the that the "ie Facebook was never worth $15B.
While a valuation of $3-5B is a much more reasonable figure than $15B for a network thats still struggling with monetization, its also still a pretty mind-boggling figure. What do you think? Is $5 billion asking too much for Facebook?
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