It’s time for this week’s round of the Facebook valuation game! Yesterday Henry Blodget reported that wealthy investors have been trading shares at around $5.50 which gives Facebook an approximate valuation of $2 billion. The only person crying about such a decrease is Microsoft, but then again Microsoft isn’t exactly short on cash. Owen Thomas at Valleywag states:
The market price is falling fast. We’ve heard of shares trading for $5.50, which suggests a valuation for Facebook of around $2.3 billion, but that’s the highest. There’s plenty of interest for shares at prices between $2.50 and $4 – though those are distressed prices. At the low end of that range, Facebook would be worth a mere $1.3 billion – less than a tenth of the price at which Microsoft invested its $240 million last year.
We previously wrote about Accel’s new billion dollar round of funding and how part of it could potentially be for getting Facebook another round. That was just speculation though but remember we’re playing the “Facebook Valuation Game!” The favorite parlor game of Silicon Valley entrepreneurs (and internet entrepreneurs that happen to be situated here in D.C. ;)).
David Kirkpatrick posted a comment on my Accel post last week saying that the Valleywag speculation was highly inaccurate. Rumors often turn out to be true though and in Mark Zuckerberg’s interview with Mike Arrington it appeared as though Zuckerberg was admitting the company was getting more money. He stated “We’re not actively going around trying to raise money from a lot of different people. It’s more just a follow on to that [previous round].”
Maybe what has been taking so long is the lack of a desire of investors to invest at the $15 billion valuation and a lack of a desire on Facebook’s part to sell at a lower valuation. Whatever it is, it’s all speculation! And that’s it for this week’s round of the Facebook valuation game!