Facebook Continues to Surge in Value
Remember back in October of 2007 when people were laughing at Microsoft for buying a 1.6% stake in Facebook for $240 million?
That deal is looking pretty savvy for Microsoft now, as their stake in Facebook is now worth roughly $1.26 billion.
Remember back in 2005 when Facebook CEO Mark Zuckerberg famously spurned a $1 billion takeover bid from Yahoo? At the time, people were calling Zuckerberg all sorts of names. Crazy. Stupid. Reckless. The list goes on and on.
Six years later, Facebook is worth nearly $80 billion and Mark Zuckerberg has a total net worth of around $15 billion. Turns out he wasn't so stupid after all.
According to Techcrunch.com, the value of Facebook has risen to nearly $80 billion on the secondary market. Facebook hasn't gone public (not yet anyways), but you can still buy and sell shares of the company on the secondary market through sites such as SecondMarket.com. The price of Facebook reportedly rose 5% over the past week, with shares of the company now valued at $31.50 each. According to Techcrunch, there are roughly 2.5 billion shares of Facebook outstanding, which gives us the $78.75 billion valuation.
Back in January of 2011, Goldman Sachs raised many eyebrows when they announced that they were investing $450 million of their own money into Facebook at a $50 billion valuation. A little over three months later, and Goldman's stake in Facebook is now worth over $700 million.
With its current valuation of $79 billion, Facebook is now worth roughly the same amount of money as both McDonald's and Disney.
Will Facebook continue to grow in value in the coming weeks, months and years? Will Facebook eventually catch up to Google, which is currently worth around $180 billion?
Will Facebook eventually become of the world's most valuable companies, joining the likes of Apple and Exxon Mobil, as some people are boldly predicting?
Or is Facebook wildly overvalued and destined to take a tumble?
Source: TechCrunch.com - New Facebook Valuation Record as Shares Surge 5% to $31.50
Filed under: General Market News