We all know that Facebook is the most used network in the world today and it is on the fast way to becoming a public company. Can anyone or is anyone able to judge the price of that Facebook is worth, especially considering that Mark Zuckerberg "Facebook Founder" has insisted that Facebook had been designed as a social platform and he wishes that it to remain that way going forward. Will that stance have a bearing impact on the valuation of this soon to be public company? The financials of Facebook have been laid bare and this is the only question left unanswered.
The answer to the question may be provided best after the completion of the private market transaction. According to Bloomberg News Facebook sold hundred thousand Class B common stock shares at the price of $40 on the SharesPost and this was also confirmed by the private capital market. The sale factored in a completely diluted total share count of 2.35 billion and values the social network at $94 billion.
Facebook filed itself for becoming a public company, and is also hoping to raise $5 billion in its initial public offering. The company that consists of 845 million active users monthly as well as an extremely profitable advertising business is expected to be valued between $75 and $100 billion on its stock market debut.
One of the Internet IPO "Initial Public Offering" expert revealed that $100 billion figure is fairly optimistic. An entrepreneurship professor studies and exclaimed in his interview that the $100 number that has been circulated so widely completely depends on the 5 per cent of the shares that is being worth potentially $5 billion. It is true that the speculation of evaluating what social networking company is worth of will be continued to run till the time the IPO is not released.
When we ask what Facebook is worth, the investors dug themselves in the freshly-released financials of the company in order to circulate the range of values. Investors as well as analysts evaluate the price for the social networking website between $50 billion to $125 billion. It will take months for the company to arrive at an actual price, but the question of valuation has already become a tug of war. This tug of war has been started on two main questions – how fast will the company continue to grow? And can the company extract value from advertising in the way it plans?
Company is looking at itself through a relatively conservative lens, securing its value for employee stock at $29.73 per share, providing it with the total valuation of $74 billion. All the calculations were performed during the period of the downturn of the stock market and when some of the internet stocks were struggling.
Since the downturn of stock market the shares of Facebook have rebounded a bit in private marketplaces for trading at $32 to $33 a share. All this was released as per the securities trader and could imply the valuation of about $81 billion. Facebook may unlock the price of its own may be sooner or later. But after knowing all the facts and figures of the company you can think of the amount of business the social networking sites do in a year.