See How Much Your ‘Friendship’ is Worth: Facebook Valued at $23 Billion
Reuters is reporting that Facebook the world’s largest social netwstockork is worth $23 billion. That’s roughly $50 per “friend” who rents “free” profile space on the site.
Private equity firm Elevation Partners purchased $120 million in Facebook stock from private shareholders, valuing the company at $23 billion, according to a person familiar with the matter.
The stock purchases represented Elevation’s second round of investments in shares of Facebook through the secondary markets, giving the firm a 1.5 percent stake in the world’s largest Internet social network.
In 2009, Facebook generated between $700 million and $800 million in revenue. During this past year, the privately held company’s stock rose with people clamoring to purchase it. To safeguard themselves, Facebook barred its employees from selling their shares to outside investors, except during specified periods. This, however, is not one of those periods.
According to Reuters,
The firm had already purchased $90 million worth of Facebook shares based on a $9 billion company valuation in November. Elevation has invested in Facebook at a $14 billion blended valuation, based on the two investments, the source said.
Other Facebook backers include Digital Sky Technologies, Microsoft Corp Corp, Hong Kong tycoon Li Ka-shing and venture capital firms Accel Partners, Greylock Partners and Meritech Capital Partners.
Elevation Partners also invested $460 million in Palm over a period of several years. And in January they committed to invest up to $100 million in online review site Yelp.
Category: Featured, News | Tags: accel partners, Digital Sky Technologies, Elevaton Partners, facebook, Greylock Partners, Investment, Li Ka-shing, Meritech Capital Partners, Microsoft, Private Equity, stocks
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