Facebook: Now valued at $33.7 billion

With Facebook reaching 500 million users last month the social networking site is growing at a rapid rate, despite any concerns with security. Now with a future flotation on the US stock market investors are paying up to $76 for a share which is giving Facebook a value of $33.7 billion.

Graeme Wearden of Guardian is reporting while Facebook is privately held stock can still be sold through “secondary market” trading. The latest price for the shares is more than double than that at the beginning of the year. But shares being sold in this way can give an inflated value for a company as they are hard to come by so investors will pay more.

Advertising revenue this year for the site is expected to be in the region of $1.285bn, and rise to $1.76bn next year. Facebook’s value is small in comparison to Apple’s who are worth $219bn, but is worth almost twice as much as Yahoo!, which is valued at $18bn.

Back in 2007 CEO Mark Zuckerberg knocked back a $1bn takeover offer from Yahoo!, but sold a 1.6% stake to Microsoft for $240m which at the time valued Facebook at $15bn.

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Written by Gary Johnson

Gary has a background in engineering and passion for motorcycles, gadgets, and home cinema. In his early years, his obsession for Hi-Fi technology would see him creating the perfect setup with a good ear for sound quality. While Gary is keen to write about most topics that PR covers, his love for phones finds him reporting a lot of news about applications for iPhone, Android, and other popular operating systems

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