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Facebook Stock Value Past and Present

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Facebook Stock Value Has Increased Dramatically Since Its Founding

Facebook StockThe Facebook stock value has increased dramatically over the past few years.  Prior to undergoing the Facebook Initial Public Offering (IPO) in May 2012, the Facebook stock value has been measured by the valuation of investments made in Facebook by private investors and the valuation of Facebook based upon private transactions involving the sale of Facebook’s privately held stock.

Here’s a look at Facebook’s valuation and Facebook stock value over the years since the company’s founding.  Facebook was founded in June 2004.  The first valuation of the relatively small but fast growing Facebook was in January 2006, when Facebook rejected a $750 million buyout offer from media giant Viacom.  In September 2006, Yahoo made a $750 million buyout offer for Facebook, which was subsequently rejected.  In October 2007 Microsoft invested in Facebook by buying a 1.6% stake, which gave Facebook a valuation of $15 billion.  In May 2009 Facebook’s valuation dropped to $10 billion, based on a $200 million investment by Digital Sky Technologies, a Russia based investment group.  More than a year later, in November 2010, Accel Partners, a venture capital company that was an early investor in Facebook, sold approximately 15% of its stake in Facebook for $517 million, which pegged Facebook’s value at $35 billion.  In December 2010 Facebook’s valuation was approximately $56 billion, based on transactions involving the sale of privately held Facebook stock.  In January 2011, Facebook reached the $50 billion milestone, when the company raised $500 million from a Russian investment firm and the United States based investment banking firm Goldman Sachs.

The Facebook stock value has been initially priced at a range between $28 and $35 per share for investors that are allocated shares as part of the May 2012 Facebook Initial Public Offering (IPO).  The Facebook stock value between $28 and $35 per share translates into a valuation for Facebook between of $77 billion to $96 billion.  The Facebook stock value and valuation may increase before the Facebook IPO occurs, if overwhelming investor demand for Facebook’s stock causes the IPO underwriters to increase the offering price for Facebook IPO shares.

Facebook Stock Value After Facebook Is Publicly Trading

The big question to be answered is what will the Facebook stock value be after Facebook is trading publicly on the NASDAQ stock exchange under symbol “FB”?  Regardless of what the final price that shares are sold at during the Facebook IPO, the Facebook stock value is likely to increase once Facebook’s stock can be brought on the open markets, due to investor demand for Facebook shares.  Since it is unknown what the Facebook stock value will actually be after the Facebook IPO, it is useful to keep these Facebook stock value and valuation milestones in mind.

  • At a $50 Facebook stock value, Facebook will have an approximate valuation of $137 billion.
  • At a $75 Facebook stock value, Facebook will have an approximate valuation of $205 billion
  • At a $100 Facebook stock value, Facebook will have an approximate valuation of $274 billion

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