'Awesome?' Facebook Valuation Remains $87.5 Billion

With bidding on Facebook shares beginning around when the press learned of a product announcement, it's interesting that the latest private stock auction resulted in the same valuation for the company as last time.

Facebook retains its $87.5 billion valuation, based on the outcome of yesterday’s auction of 150,000 shares at $35 apiece on SharesPost.

We’re assuming that Facebook still has 2.5 billion outstanding shares, and that this latest SharesPost auction would have taken about a week from start to finish.

It’s certainly interesting that the bidding began around when Facebook Chief Executive Officer Mark Zuckerberg first told reporters that the company would make an “awesome” product announcement.

Usually, a product announcement motivates investors to trade up the value of a particular stock, or if there’s anything negative associated with the news, trading would move the price down. Ending at the same price seems a tad unusual.

A copy of the SharesPost email to members appears below. Let us know what you think about the current valuation of Facebook — do you think $35 per share is a reasonable price?

Hello Jackie,

We are writing SharesPost members like you who indicated they would like to occasionally receive news from SharesPost.

We would like to inform you that SharesPost’s affiliated broker-dealer completed its auction of 150,000 shares of the Class B Common Stock of Facebook, Inc. yesterday, July 6th. A clearing price of $35.00 was established at the auction. Members submitting Qualifying Bids at or above the clearing price will be contacted shortly with instructions on next steps for completing this transaction.

SharesPost members who wish to be informed of and be eligible to participate in future auctions of private company securities must first be qualified by our affiliated broker-dealer as an accredited investor under the securities laws. To get qualified, please click on the green button below. We look forward to serving you at SharesPost in the future.