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Share site values Facebook at USD4bn to USD6bn
A website that matches buyers and sellers of secondary equity values Facebook at between USD3.15bn and USD4.34bn, and claims to have identified 35 sellers of Facebook stock. The site could help employees and investors in the privately owned company cash-in on their stock in the absence of a fertile IPO market. As well as Facebook, Sharespost is valuing professional network LinkedIn at about USD1.5bn and Second Life creator Linden Labs at a little below USD700m, in line with analyst reports.
As a private company, Facebook does not sell shares on the open market, meaning that employees or investors who wish to offload shares must find a buyer on the secondary equity market. This market can be hard to negotiate because of the lack of agreement on the valuations of private companies. Sellers must often find buyers themselves and negotiate prices informally, leading to a perception that secondary equity markets are risky.
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