Facebook valued at $50 billion?

30 Nov 2010

Facebook may now be valued at $50bn in secondary trading, after a recent share auction saw its end price per share reaching $20.76.

Just under 1.9 million shares were cleared at a Facebook share auction held by SecondMarket.

About $40m changed hands at this auction, leaving the end price per share at $20.76.

TechCrunch suggests that, based on the fact there is 2.5 billion shares outstanding after a 5-1 stock split, Facebook is now valued at about $50bn.

The site also says a new auction for shares may have already begun.

This would make it more than a quarter of the value of Google and worth more than Yahoo! and eBay.

Facebook has not confirmed this. As it is privately held, it may prefer to keep its valuation quiet.

If true, then such a high valuation could be a cause for concern though it may be some time yet before these estimates will be confirmed or denied.