Facebook Secondary Stock Just Surged To $34 — That's An $85 Billion Valuation

Just 10 days ago, we noted that Facebook had hit a new valuation record as shares on the secondary markets surged some 5 percent to $31.50 a share. That auction was through SecondMarket and put the on-paper valuation of the company at roughly $78.75 billion (based on roughly 2.5 billion shares outstanding). Today — again, just 10 days later — we have another Facebook share auction that has closed. And unbelievably, the price now is at $34 a share. That’s an even $85 billion valuation.

I repeat: $85 billion.

It was only three weeks ago that Facebook hit a massive $75 billion valuation. Again, that was through SecondMarket. Today’s new record numbers come by way of SharesPost. In a message to clients, they note that they’ve just completed the auction of 100,000 shares of Class B Common Stock at the $34 price. Those members are now being notified on how to take steps to compete the purchase.

100,000 shares at $34 is “only” $3.4 million. But still, the valuation is set at $85 billion based on this buy. The people buying today will not see any money from the stock purchase unless the stock moves beyond that massive valuation. And based on recent trends, it will do that very quickly.

The next question is apparently “when” and not “if” the stock will hit the $100 billion valuation. Crazy.

Email from SharesPost below:

Hello XXXXX,

We would like to inform you that SharesPost’s affiliated broker-dealer completed its auction of 100,000 shares of the Class B Common Stock of Facebook, Inc. on March 18th. A clearing price of $34.00 was established at the auction. Members submitting Qualifying Bids at or above the clearing price will be contacted shortly with instructions on next steps for completing this transaction.

SharesPost members who wish to be informed of and be eligible to participate in future auctions of private company securities must first be qualified by our affiliated broker-dealer as an accredited investor under the securities laws. To get qualified, please click on the green button below. We look forward to serving you at SharesPost in the future.