Feeds

Facebook fever prices social network at $70bn

We're forever blowing bubbles

Top three mobile application threats

Doomsayers who believe the Internet is looking like a bubble again will be out in force, following GSV Capital’s decision to tip $US6.6 million into Facebook.

The dollar value is trivially small, but GVC is only buying 225,000 shares, putting a notional valuation of $US70bn on the social network site.

Even that number is slightly lower than the level at which Facebook shares are being privately traded, according to this Fortune piece in which GVC back-pats itself for getting a discount.

The new investor calls Facebook “the top private company in the world” and said it’s feasible that the company could remain private indefinitely.

Each new investment in Facebook bumps the company’s ostensible value around by billions. Back in 2008, Facebook valued itself at only a few billion.

In 2009, Russian company DST’s buy-in tagged the company at $10bn, while in 2010 it was said to be worth $23bn.

The bubble-pump was given a couple more strokes earlier this year, when an investment from Goldman Sachs lifted that price tag to $US50bn.

Even at a discount, GVC’s investment pushes Facebook towards the speculative figure of $100 billion that CBNC believes it would fetch if it went ahead with an IPO in 2012.

GSV claims Facebook now has a user base of more than 650 million people, which would put it in front of one-tenth the world’s population. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.