Facebook is Worth Billions
July 13, 2009 by Mark Ellis
Filed under Business
Most people probably would not have a clue when it comes to assigning a monetary value to the giant social networking website Facebook.com. However, a Russian investment firm has offered to buy $100 million worth of Facebook shares at $14.77 per share, putting the value of the company at $6.5 billion minimum.
The same investment group, Digital Sky Technologies, bought $200 million worth of preferred Facebook shares back in May, which would mean that Facebook is worth $10 billion. This means that one could estimate Facebook’s open market value to be anywhere from $6.5 billion to $10 billion because of the difference between preferred and common shares.
Last year during a legal settlement, Facebook calculated its own value at around $3.7 billion, but this new development means that Facebook has potentially underestimated its value by several billion dollars. Facebook could find out its exact value by establishing an initial public offering, but Facebook founder and CEO Mark Zuckerburg has been reluctant to do so.
The same investment group, Digital Sky Technologies, bought $200 million worth of preferred Facebook shares back in May, which would mean that Facebook is worth $10 billion. This means that one could estimate Facebook’s open market value to be anywhere from $6.5 billion to $10 billion because of the difference between preferred and common shares.
Last year during a legal settlement, Facebook calculated its own value at around $3.7 billion, but this new development means that Facebook has potentially underestimated its value by several billion dollars. Facebook could find out its exact value by establishing an initial public offering, but Facebook founder and CEO Mark Zuckerburg has been reluctant to do so.
Image: Flickr
