Will you be investing in Facebook in 2012?

Facebook CEO, Mark Zuckerberg

With the recent release of "The Social Network", everyone seems to be abuzz about Facebook. Curious as to how the ownership of the company really breaks down?

Facebook, recently, has quietly indicated that they will take the company public in 2012. With this news comes the need to "value" the company for further public understanding of what the company's stock should be valued at.

The real question is how much Facebook is really worth; if you look at recent investments by Goldman Sachs and a Russian investment firm in late 2010, the answer is $50,000,000,000. The only other insight into some sort of valuation comes through recent investments in Facebook by other major global firms in 2010:

  • Digital Sky Technologies: ~10% (or $5 billion)
  • Goldman Sachs (NYSE: GS): ~0.8% (or $400 million)
  • Goldman Sachs' clients: ~3% (or $1.5 billion)
  • Greylock Partners: ~1.5% (or $750 million)
  • Meritech Capital Ventures: ~1.5% (or $750 million)

What's interesting is that Facebook sold a 1.6% stake in their company to Microsoft in the fall of 2007, for $240,000,000. This purchase, when Facebook was only 3 1/2 years old, placed the company's value at $15,000,000,000.

This means that the value in Facebook has tripled in three short years. So the question abounds: will you be buying Facebook stock in 2012???

Here is a complete breakdown of the current ownership of Facebook, as recently released by Benzinga:

  • Facebook Staff: ~30% (or $15 billion)
  • Mark Zuckerberg ~24% ($15 billion
  • Digital Sky Technologies: ~10% (or $5 billion)
  • Other Investors: ~9.7% (or $4.85 billion)
  • Dustin Moskovitz: ~6% (or $3 billion)
  • Eduardo Saverin: ~5% (or $2.5 billion)
  • Sean Parker: ~4% (or $2 billion)
  • Goldman Sachs' clients: ~3% (or $1.5 billion)
  • Peter Thiel: ~3% (or $1.5 billion)
  • Bono: ~1.5% (or $750 million)
  • Greylock Partners: ~1.5% (or $750 million)
  • Meritech Capital Ventures: ~1.5% (or $750 million)
  • Goldman Sachs (NYSE: GS): ~0.8% (or $400 million)
Please contact us to learn more!

By Robby Monk