Facebook investors want out

Early Facebook investors, who own nearly US$1 billion in the company’s stock, are cutting their asking prices and heading for the door, sources have told Reuters exclusively.

The shareholders seem worried that the social network is overvalued, and have already tried to sell their shares at a price that values the company at $90 billion, but buyers didn’t go for it. Now, they’re trying again with a sale on the secondary market, which would value the company at more than $70 billion, five sources “with direct knowledge of the situation” told Reuters in an article published yesterday evening.

In January, Goldman Sachs valued Facebook at $50 billion, The New York Times then reported. Last month, it was valued at $78.75 billion, according to a report by TechCrunch.

In November last year, Fast Company published a Facebook Valuation Timeline, which chronicled the previous ups and downs of the company’s valuation.

Image: Andrew Hur for Fast Company

This entry was posted in Facebook, investors, Stocks. Bookmark the permalink.

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