This doesn’t seem right, but…Over on SharesPost, an investor just agreed to buy Facebook stock at a price of $55 per share for an implied valuation of an incredible $124 billion. That’s a 62X valuation multiple on Facebook’s $2 billion 2010 revenues.
But the thing is, several other investors have submitted bids implying similarly astronomical valuations. One guy wants 1,000 shares at $60 a pop, implying a $136 billion market cap.
For some context, remember that Goldman Sachs is right now out pitching clients to see if they’d like to buy $1.5 billion worth of Facebook stock at a $50 billion valuation.
Last month, SharesPost hosted an auction and sold a whole bunch of Facebook stock at a $56 billion valuation.
The only time any sane person ever put numbers this huge next to Facebook, was when Wedbush analyst Lou Kerner said the company would be worth $200 billion…in 2015!
The only reason we’re even close to believing this one transaction and several bids are real is that thanks to the Goldman deal, Facebook hype is at all time high right now.
Also, we’re talking about (relatively) small amounts of money. Unlike Goldman clients, these people are throwing thousands of dollars, not millions, at Facebook stock.
(By the way, the fact that smaller investors are playing so heavily in Facebook stock only reinforces the idea that a “public market” for the stock already exists and it’s only a matter of time before the SEC will regulate Facebook like a “public” company.”)
All kinds of funny business could be going on here. For example, it’s entirely possible that a person who owns a large stake in Facebook is actually buying up more stock at outlandish valuations in hopes of selling the rest at a higher price.
Right now, we’re trying to confirm that these bids are real. Because of regulatory issues, SharesPost is a secretive company so we’re not sure we’ll be able to get one.
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