Now Facebook worth USD 41 Billion, surpasses eBay

Facebook ranks as the third largest web company

PTI | November 16, 2010



Just an hour before Facebook is set to announce its 'gmail killer', it now ranks as the third largest web company, with an estimated valuation of USD 41 billion which is greater than EBay.

According to Bloomberg, the social network's latest valuation, based on the selling price of shares on SecondMarket, an exchange for privately held companies, makes it the country's third-largest online business after Google (USD 192.9 billion) and Amazon (USD74.4 billion).

Since Facebook has yet to go public, its forecasted revenue and worth in the public market is all still theoretical. Facebook, which expects sales of at least USD 1.4 billion this year, has called the figure "fundamentally speculative."

Based on recent private-market transactions, Facebook has a total estimated value of USD 41 billion, exceeding eBay's USD 39.4 billion in market capitalisation.

The only two web companies worth more than Facebook are Amazon, at USD 74.4 billion and Google, Inc., at USD 192.9 billion.

Today's value of Facebook comes from an "off-the-record" conversation that Bloomberg BusinessWeek's Brian Womack had with someone who had access to recent transaction data on SecondMarket.com.

Now if Facebook were trading on an exchange that the public could access, the size of the company's total market capitalization might increase over the course of the trading day ‘ depending on the exact details that Mark Zuckerberg announces at today's 10 am PST press conference.

Facebook's value has been growing for almost three years now, but it seems to be accelerating recently.

While there's no doubt that Facebook is one of the biggest websites and one of the biggest companies of the moment, it's hard to know if the company's estimated valuation has anything to do with its actual worth.

And there is no way of knowing that until Facebook finally files for an initial public offering.

Based on what Facebook has been saying so far, that may be at least a couple of years from now.

The reason why Facebook is not jumping ahead and filing for an IPO is that, while the company is growing fast, its revenue is still not spectacular.

Facebook could bring in close to USD 1.5 billion or as much as USD 2 billion in revenue this year, depending on who's doing the estimates.

Facebook's users have increased by more than two-thirds since September 2009, when it had 300 million members.

Comments

 

Other News

How the mind can help the body heal itself

Why do some people recover from illness against all odds? Can our beliefs, emotions and consciousness influence the body’s ability to heal? Drawing on over three decades of experience in medicine, research and medical innovation, internationally trained ophthalmologist and author Dr Dinesh Verma ex

1,364 anti-cancer formulations to cost less from today

The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, has capped trade margins on the Maximum Retail Price (MRP) of 137 anti-cancer drugs. This was based on the recommendations of an Expert Committee constitute

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter