Facebook Shares Dip 7% In Most Recent SecondMarket Auction

A week ago Facebook shares were being traded at $28.26 per share, a $70 billion valuation. In this week’s auction at SecondMarket the per share price declined just over 7%, to $26.25, a $65.5 billion valuation with around 2.5 billion shares outstanding. That’s a $5 billion decline in valuation. 670,000 shares were sold for a total of around $17.5 million.

Did it peak? I have no idea. We still have to update our two week old chart showing a high valuation of $50 billion. Maybe things are just cooling down for a while. We’ll know more after next week’s super confidential Facebook share auction.

Here’s the email.

To Facebook market participants:

Thank you to those who participated in this week’s SecondMarket auction for Facebook shares. The auction was successful and partially cleared (94.6%) at a per share price of $26.25. Next week, the floor price will be $24.96 and we will require a minimum sale of 25,000 shares.

If you own shares that you are eligible to sell and wish to participate as a seller, please complete the attached Seller Information Form and submit it to SecondMarket at fb@SecondMarket.com by Monday, January 31 at 7:00 PM EST. To verify receipt of your sell order, you must receive a confirmation email from fb@SecondMarket.com. If you do not receive a confirmation email, your sell order has not been received by SecondMarket and may be excluded from the auction.

Please see below for detailed results on previous auctions and for next week’s auction timeline.

Previous Auction Results:

Total Shares Cleared to Date: 3,391,265 over six auctions

Clearing Price in Most Recent Auctions:
January 24, 2011: $26.25
January 12, 2011: $28.26
December 15, 2010: $22.75
December 8, 2010: $21.90

Next Week’s Adjusted Auction Timeline:

– Monday, January 31 at 7:00 PM EST – Seller Information Forms due
– Monday, January 31 at 8:00 PM EST – Buyers informed of share quantity available and minimum purchase amount
– Wednesday, February 2 at 12:00 PM EST – Buyer Information Forms due
– Wednesday, February 2 at 5:00 PM EST – Participants informed of auction results
– Wednesday, February 2 at 8:00 PM EST – Transaction documentation distributed to buyers and sellers
– Friday, February 4 at 4:00 PM EST – Completed transaction documentation due from buyers and sellers
– Friday, February 4 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 fb@SecondMarket.com or 212.668.3919 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.