Facebook is reportedly preparing to raise $10 billion in an IPO that will value the company at $100 billion in the first half of the next year.
It’ll be a great day for many of Facebook’s employees who will be able to sell their stock in the company getting a nice return.
It will not be such a great day for investors who bought Facebook shares on the private markets at prices above an implied valuation of $100 billion.
As you can see in this chart, which is based on data from private marketplace SharesPost, Facebook’s valuation spiked as high as $141 billion earlier this year. Whoever paid that price better hope Facebook’s stock pops on day one, or that company’s valuation climbs over time.
We’ll be talking about private markets and how they affect investors and startups tomorrow at IGNITION. Stay tuned to the site to hear what Second Market CEO Barry Silbert and SharesPost CEO David Weir think of this chart and the Facebook IPO.