Summary: If Facebook were to go public now, it would be valued at $94 billion. Of course, that’s not going to happen, since the company only filed for its initial public offering (IPO) this week.
Remember that SharesPost auction that started before Facebook’s IPO filing? The auction closed yesterday, leaving Facebook with an implied valuation of $94 billion. That’s higher than any other previous valuation.
For a while now, employees and early stakeholders have been selling shares privately on SecondMarket and SharesPost. Most of these have been in the valuation range of $80 billion, although there have also been auction failures. The second market is different, but nevertheless, it still gives you a good idea if a company’s valuation is decreasing or increasing.
When I first wrote about the latest SharesPost auction earlier this week, Facebook had an an implied valuation of $83.5 billion thanks to a share price of $35.50. After the IPO numbers were released though, the share price jumped to $40. Doing some basic math, this means the auction gave Facebook an implied valuation of $94.1 billion, assuming some 2.35 billion outstanding shares.