Feeds

Facebook fever prices social network at $70bn

We're forever blowing bubbles

The next step in data security

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.