Facebook’s $40 Billion Price Plunge
Business + Economy

Facebook’s $40 Billion Price Plunge

Facebook is reportedly preparing to raise $10 billion in an IPO that will value the company at $100 billion in the first half of the next year.

It'll be a great day for many of Facebook's employees who will be able to sell their stock in the company getting a nice return.

It will not be such a great day for investors who bought Facebook shares on the private markets at prices above an implied valuation of $100 billion.

As you can see in this chart, which is based on data from private marketplace SharesPost, Facebook's valuation spiked as high as $141 billion earlier this year. Whoever paid that price better hope Facebook's stock pops on day one, or that company's valuation climbs over time.

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