Facebook valued at over $10 billion
Tuesday 14 July 2009
How much is Facebook worth? A Russian investment firm appears to put it at $6.5 billion to $10 billion.
The investment group, Digital Sky Technologies, said it will buy up to $100 million worth of Facebook shares from current and former employees.
At the price the firm would pay, $14.77 per share, the internet networking company would be worth about $6.5 billion.
In May, Digital Sky bought $200 million worth of preferred shares in Facebook. That valued the company at roughly $10 billion, but those shares are worth more because they come with more rights.
Facebook's open-market price would likely fall between the values implied by the preferred and common shares.
A true test would come if Facebook pursued an initial public offering, which founder and CEO Mark Zuckerberg has said he is no hurry to do.
At the very least, it seems Facebook is worth less than $15 billion, which was implied in 2007 when Microsoft bought a 1.6 per cent stake in the company's preferred shares for $240 million.
But based on Digital Sky's investment it is worth more than the $3.7 billion value that Facebook placed on itself after the Microsoft deal, according to details revealed last year in a legal settlement.
Based in London and Moscow, Digital Sky also holds a stake in vKontakte, a Russian social network that is much more popular in that country than Facebook. If its $100 million tender offer is fully paid out, the company will end up with a 3.5 per cent stake in Facebook.
The offer is not open to Zuckerberg and other Facebook executives.
Life & Style blogs
The difference between a psychopath and a sociopath
Prostate cancer could actually be five different diseases, say scientists
Samsung Galaxy S6 and S6 Edge price to be slashed after disappointing sales
NHS treatments such as vasectomies and hip operations to be rationed because of cost-cutting
Hermes responds to Jane Birkin’s request to drop her name from the iconic handbag
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
While we fixate on Calais, the Government is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: For desperate migrants it is 'England or death' as they brave dogs, riot police and speeding trains
- 1 Top Gear team of Jeremy Clarkson, Richard Hammond and James May officially heading to Amazon Prime for new car show
- 2 Stuart Baggs: Apprentice star 'The Brand' found dead aged 27
- 3 How to cancel Amazon Prime: after Top Gear hiring, how to leave premium service
- 4 Tesco scraps 'unexpected item in the bagging area' as self-checkouts switch to less 'frustrating' audio
- 5 Living in Spain and commuting to London 'cheaper than actually working in London'
iJobs Gadgets & Tech
£28000 - £45000 per annum: Recruitment Genius: With extensive experience and a...
£18000 - £24000 per annum: Recruitment Genius: A fantastic opportunity has bec...
£30 to £32k : Guru Careers: We are seeking a Trainer / IT Trainer to join an a...
£18000 - £25000 per annum: Recruitment Genius: This world leader in Online Pro...