Last week, in our weekly report on the insanely hot Facebook stock trading going on behind the scenes on SecondMarket, I wrote the following: “Do I hear $75 billion next week?” I was sort of kidding. But it looks like the joke is on me!
Sure enough, Facebook did hit a $75 billion valuation on SecondMarket this week, a new record.
I thought my prediction might be a little too optimistic give that it was at a “mere” $70 billion a week ago. Shares were trading at $28 a share then, after rallying back from a few weeks of actually being down. But they jumped a full two dollars this week, to be trading at $30 a share. With about 2.5 billion shares outstanding, that’s trading at a $75 billion valuation.
This blows by the $28.26 and $70.65 billion valuation record set in mid-January. And it puts the valuation a cool $10 billion past the $65 billion valuation that a General Atlantic investment (in private shares) will apparently give the social network.
Below, find the full email sent out of the folks buying this stuff up:
To Facebook market participants:
This week’s SecondMarket auction successfully cleared 115,000 shares at a per share price of $30.00. Read more details in the attached auction results report.
Next week’s auction will require a minimum sale and minimum purchase of 10,000 shares. If you are bidding for fewer than 100,000 shares, you are required to open a brokerage account with SecondMarket. Please email XXXX@SecondMarket.com to receive a Brokerage Account Opening Form and return the completed form by Monday, March 7, 2011 at 5:00 PM EST.
Please email your completed Seller or Buyer Information Forms to XXXX@SecondMarket.com by Wednesday, March 9 at noon EST. To verify receipt of your order, you must receive a confirmation email from XXXX@SecondMarket.com. If you do not receive a confirmation email, your order has not been received by SecondMarket and may be excluded from the auction. Responses are typically sent within one hour.
Next Week’s Auction Timeline:
- Friday, March 4 at 7:00 PM EST – SecondMarket will begin accepting Seller Information Forms, Buyer Information Forms and Brokerage Account Opening Forms
- Monday, March 7 at 5:00 PM EST – Brokerage Account Opening Form due, if bidding for fewer than 100,000 shares
- Wednesday, March 9 at 12:00 PM EST – Seller and Buyer Information Forms due
- Wednesday, March 9 at 5:00 PM EST – Participants informed of auction results
- Wednesday, March 9 at 8:00 PM EST – Transaction documentation distributed to buyers and sellers
- Thursday, March 10 at 5:00 PM EST – Wire of 100% of gross purchase price to escrow account due, if allocated fewer than 100,000 shares
- Friday, March 11 at 4:00 PM EST – Completed transaction documentation due from buyers and sellers
- Friday, March 11 at 7:00 PM EST – Notice sent to Facebook, Inc.
By reading this email, the recipient acknowledges and agrees that all of the information contained herein is confidential and that the recipient will keep this information confidential. The recipient further agrees that it will not copy, reproduce, or distribute this email in whole or in part.
Please contact us at XXXX@SecondMarket.com or XXX.XXX.XXXX if you have any questions.
Please note that the information in this email does not constitute an offer to sell to, nor a solicitation of an offer to buy from, nor shall any securities be offered or sold to, any person in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
Facebook is the world’s largest social network, with over 1 billion monthly active users. Facebook was founded by Mark Zuckerberg in February 2004, initially as an exclusive network for Harvard students. It was a huge hit: in 2 weeks, half of the schools in the Boston area began demanding a Facebook network. Zuckerberg immediately recruited his friends Dustin Moskovitz, Chris Hughes, and Eduardo Saverin to help build Facebook, and within four months, Facebook added 30 more college networks. The original...