Facebook is worth $50 billion? Worth 25 times last year’s revenue?
If it seems like we have heard such incredulity before its because we have. People have raised doubts about the social-media company’s valuation since its founding in 2004. Remember when Facebook rejected Yahoo’s $1 billion offer in 2006? Or Microsoft’s $250 million investment that valued the firm at $15 billion in 2007?
And yet despite the head-shaking about the sky high pricetag, the value of Facebook just keeps going up.
Facebook is hardly the only online firm seeing its valuation jump recently, either. Last week the WSJ reported that trading in shares of Twitter and LinkedIn, as well as Facebook, had surged in recent months, with corresponding increases in prices.
Below are key points in the Facebook and Twitter’s valuation.
January 2011: $50 billion–Facebook raises $500 million from Goldman Sachs and a Russian investment firm in a deal that values the company at $50 billion.
December 2010: $56 billion–Facebook’s average valuation based on transactions on SharesPost rises to more than $56 billion.
November 2010: $35 billion–Venture-capital firm Accel Partners, an early backer of the social-networking firm, sells less than 15% of its stake for $517 million.
May 2009: $10 billion–Facebook receives a $200 million investment from Russian Internet-investment group Digital Sky Technologies, representing a nearly 2% stake at a valuation of $10 billion for Facebook preferred stock.
October 2007: $15 billion–Microsoft buys a 1.6% stake in Facebook, placing a $15 billion valuation on the company.
September 2006: $1 billion–Yahoo tables a $1 billion offer for Facebook.
March 2006: $750 million–Facebook reportedly rejects a $750 million offer for the firm.
June 2004: Facebook founded.
If it seems like we have heard such incredulity before its because we have. People have raised doubts about the social-media company’s valuation since its founding in 2004. Remember when Facebook rejected Yahoo’s $1 billion offer in 2006? Or Microsoft’s $250 million investment that valued the firm at $15 billion in 2007?
And yet despite the head-shaking about the sky high pricetag, the value of Facebook just keeps going up.
Facebook is hardly the only online firm seeing its valuation jump recently, either. Last week the WSJ reported that trading in shares of Twitter and LinkedIn, as well as Facebook, had surged in recent months, with corresponding increases in prices.
Below are key points in the Facebook and Twitter’s valuation.
January 2011: $50 billion–Facebook raises $500 million from Goldman Sachs and a Russian investment firm in a deal that values the company at $50 billion.
December 2010: $56 billion–Facebook’s average valuation based on transactions on SharesPost rises to more than $56 billion.
November 2010: $35 billion–Venture-capital firm Accel Partners, an early backer of the social-networking firm, sells less than 15% of its stake for $517 million.
May 2009: $10 billion–Facebook receives a $200 million investment from Russian Internet-investment group Digital Sky Technologies, representing a nearly 2% stake at a valuation of $10 billion for Facebook preferred stock.
October 2007: $15 billion–Microsoft buys a 1.6% stake in Facebook, placing a $15 billion valuation on the company.
September 2006: $1 billion–Yahoo tables a $1 billion offer for Facebook.
March 2006: $750 million–Facebook reportedly rejects a $750 million offer for the firm.
June 2004: Facebook founded.
December 2010: $3.7 billion — Twitter raised a round of funding that valued it at $3.7 billion.
October 2009: $1 billion — An investment group including mutual fund firm T. Rowe Price and private-equity firm Insight Venture Partners plowed $100 million in fresh cash into Twitter at a valuation of about $1 billion, the Journal reported.
February 2009: $200 million-$250 million — Twitter closes the new round of funding. The third round, which a company representative says is worth $35 million, comes at a valuation of $200 million to $250 million, according to news reports.
Nov. 2008: Facebook and Twitter end several weeks of serious talks, in which Facebook was offering to acquire Twitter for $500 million of its stock.
July 2006: Founded
Comments
Post a Comment