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Facebook Insiders Limit IPO by Pushing $100 Billion Value

Facebook IPO

Facebook Inc. is already trading like a public company as insiders and wealthy investors use private marketplaces to buy and sell stock in the social- networking company ahead of its initial offering.

 

SecondMarket Valued at $200 Million

SecondMarket Valued at $200 Million

SecondMarket has raised money from a venture fund started by a former Facebook executive as the online marketplace for private shares looks to persuade more companies to sign up.

Senh: SecondMarket is an original concept. The idea is so simple, which is probably why it's catching on. The only problem I see so far is that it really over-inflates valuations of private companies like Facebook and Twitter. Their valuations are 50-100 times their revenue. It allows employees to cash in on the hype of their companies, rather than on actual revenue.

 

Wow. Just… Wow: Facebook Hits Record $75 Billion Valuation On SecondMarket

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.

Senh: A lot of people will be losing money. It's way overvalued. That's 75 times annual revenue.

 

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