Mike Arrington over at TechCrunch wrote about Facebook’s recent valuation based on common stock purchase by DST. The original share buyback was oversubscribed at a $14.77 per share price (roughly $6.5 billion valuation). This most recent sales were done at $25/share, which values Facebook at roughly $11 billion.
What is interesting, other than the fact that we are again looking down the barrel of a dot com bubble, is that I was working on a social networking project a few years ago and our wildest dreams pegged the project at a billion dollar valuation.
At that time, MySpace had just sold to News Corp for about $5.8 million and a billion dollars seemed like the most logical – yet ambitious – price ceiling to break through.
Here we are, 5 years later, looking at an $11 billion dollar valuation of Facebook and they haven’t implemented the elements that made our product different. Are we sitting on the next $100 billion dollar social project?
Only time will tell.
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