How Much is Facebook Worth? A Look Back Over the Years

1Dec/100

How Much is Facebook Worth?

Mark Zuckerberg has to be a happy man these days. He is a 24% shareholder in Facebook, the company that he co-founded with a few of his classmates while attending Harvard. Sure he has to deal with a seemingly endless amount of lawsuits as people try to take a piece of the pie, but Facebook was recently valued at over $50 billion based on private market transactions disclosed to TechCrunch.

While $50 billion seems like a lot (and it is) that is still around 1/4th the size of Google or Microsoft. Facebook is worth more than Yahoo or eBay, but it still has some catching up to do to chase down Amazon's $80 billion valuation.

How fast has Facebook reached the $50 billion mark? Let's take a look at some past transactions that give an indication of the company's worth:

November 29, 2010 - The SecondMarket.com auction closes with share prices indicating a valuation of $50 billion.

January 20, 2010 - TechCrunch reporting that offers on Second Market for Facebook's private shares put the company at roughly $14 billion.

May 2009 - Digit Sky Technologies invests $200 million for a 1.96% stake, giving Facebook a value of $10 billion.

October 2007 - Microsoft invests $240 million for a 1.6% stake, giving the company a $15 billion valuation.

April 2006 - Greylock Partners and Meritech Capital contribute $27.5 million to give Facebook a value of $525 million.

May 2005 - Accel Partners invests $12.7 million to give the company a value of $100 million.

Not a bad track of growth! A lot of people think that there are a lot of profits to be made with Facebook, but right now Zuckerberg is still concentrated on growth. Once the company goes public, he is going to have less control and more of a demand from investors on increasing profits. It will be interesting to see how this plays out over the next couple of years.

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