The most recent action in Facebook hasn’t been institutional. Sure, we’ve heard that General Atlantic is looking to scoop up the shares that employees are trying to unload – at an implied valuation of $65 billion.
The latest, however, comes from SharesPost. Another auction in Class B Common Stock has closed, with 80,000 Facebook shares moving at a clearing price of $33 per share, resulting in a transaction size of $2.64 million.
As usual, SharesPost reveals that the “response of the SharesPost community to the auction was substantial and the auction was significantly oversubscribed.” I know, I know: shocking. People want to buy Facebook. They are desperate to buy Facebook. Interestingly, existing investors seem willing to sell, even despite the hype … and the hope for a 2012 IPO.
Will there be more of these auctions? Something tells me that the future holds a few, given the repeated use of “substantial” and “significantly oversubscribed.” Everybody wants a piece of the hottest social media property on the market, it seems, and they are willing to pay.
And, the amount they are willing to pay is staggering. The General Atlantic investment, if it closes, will result in a 30 per cent valuation increase in only six weeks. The action on SharesPost is also impressive – a growth rate of 20 per cent since the $27.60 clearing price reported in the middle of January.