Blog


Most Recent Facebook Common Stock Sale Values Company At $11 Billion

Posted by Shaun Nestor on 22 Dec 2009 / 0 Comment

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.


About the Author, Shaun Nestor

Shaun Nestor is the Principal at Never Mind Marketing. He focuses his consulting on Inbound Marketing, social media, and using the power of the internet to promote brands.

Shaun has helped hundreds of people around the globe grow their business. His passion is helping small- and medium-sized companies expand their brand online.

You can find him on Google+, Twitter and LinkedIn.



You must be logged in to post a comment.