It’s quite a feat for a company that isn’t even publicly traded yet, but Business Week is reporting that Facebook is now being valued higher than the faltering eBay. Based on the privately traded share price of $16, Facebook’s total valuation is about $41 billion. eBay is only valued at $39.3 billion; although, those are real shares. The two companies Facebook is trailing are, of course, Amazon and Google. These two behemoths are valued at $74.4 billion, and $192.9 billion respectively.
Facebook’s value is all tied up in the huge number of users it has. As far as we know, the company is making money, but as it is not publicly traded yet, we don’t get the details. Facebook has been leveraging the notion that their eventual IPO will shoot their valuation into the stratosphere to pilfer employees from other tech companies. They often do this by offering juicy stock options.
Do you think that when Facebook goes public, it will end up valued higher than Amazon, or even *gasp* Google. 500 million friends may be a lot, but those people might not be worth 192 billion to investors.
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