Facebook Buying Up Employee Shares at $60 Billion Valuation
Facebook Buying Up Employee Shares at $60 Billion Valuation
Posted 02/10/2011 at 4:11pm
| by Ryan Whitwam
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According to All Things D, Facebook has made it known that it is offering to buy up $1 billion worth of employee-owned shares at a whopping $60 billion valuation. Apparently some large international investors have come calling, and Facebook has decided to offer employees that have been sitting on mountains of private stock a way to profit.
Since Facebook is not publically traded, Employees have had only limited opportunities to sell this stock, and some joined the company primarily to take advantage of the value this stock would one day hold. Facebook allowed employees to sell some stock 2 years ago, but only at a $6.5 billion valuation. This leaves holders of the stock to make the call on selling now, or waiting for the inevitable IPO.
This has to make you wonder if Facebook isn't a little over-valued in the private market. Still, it is one of the most visited sites on the internet. Do you think $60 billion is a rational valuation for Facebook? Should stock holders dump shares now?
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RodneySB
February 12, 2011 at 7:36pm
Facebook has done the right things to grown that no one else in the market has. Now that the user base worldwide is here, barring a major series of failures its going to stay a long time. Its the Microsoft of Social Netowrk sites, heck how many of us all have relatives that couldn't send email but are all of a sudden on Facebook? I would still sell, its a bit overpriced and they could dump that money into other investments that are going to grow faster.
bling581
February 11, 2011 at 11:13am
Facebook is a fad, nothing more. Eventually it will fall to the same demise as MySpace.
navalverde
February 11, 2011 at 12:47am
While 60$ a share is certainly a generous offer, as the market has indicated for other successful web companies such as google etc. Much higher share prices are highly probable once the company is publicly traded.
ibgeezer
February 10, 2011 at 9:38pm
The paper value is inflated. Sell the whole company to get a value and show the bank deposits. Nothing there. Sell the stock and run. Facebook will not be around in a few years.
someuid
February 10, 2011 at 5:55pm
I look forward to Facebook going public, and the new 'owners' getting serious about squeezing money out of it, and the Mass Exodus to Something Else.
The only constant is change.
cj100570
February 10, 2011 at 4:59pm
Facebook is worth exactly what my last bowel movement is worth....
cdowley
February 10, 2011 at 4:41pm
60 times the paid value per share? Dang, not bad. I don't see how Facebook can really be worth that in the real world, but if they'll pay that much to buy their shares back, I'd gladly be willing to sell them my shares if I had any.
don2041
February 10, 2011 at 4:28pm
Facebook is worth nothing to me It can go away & I won,t miss it
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