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Facebook more valuable than Pepsi and Citigroup
by Xavier Mory (13 Feb 2012)
Facebook shares traded on private markets rose 10% from the launch of IPO, thus the company becoming more valuable than Pepsi and Citigroup.
The company will exceed $ 100 billion, according to SharesPost, the company which managed the bidding of 150,000 shares of Class B common package of Facebook, reports Bloomberg.
The shares were sold at a price of $ 44, compared with $ 40, how much they cost on Feb. 2, according to statements coming from the capital market.
That means Facebook is valued at $ 102,6 billion, based on an estimated 2,33 billion shares, including stock tied to options that may be issued later. Once exceeded this threshold, the company becomes more valuable than PepsiCo, famous producer of juices which has a history of over a century, or than Citigroup, the third largest U.S. bank by assets.
Facebook launched last week, an initial public offering of five billion dollars, and Mark Zuckerberg, CEO of the company, is considering a sell to maintain the company value between $ 75 and $ 100 billion.
"Safety for long term investments at such prices is quite poor," said Erik Gordon, a business school professor at the University of Michigan. "For shares to be more expensive than now, would be that Facebook to be one and a half Google " in the long run, as he said.
At 100 billion dollars, Facebook has a value with 26.9 times higher than the sales in the last 12 months, and more than double Google's valuation when the search-engine operator went public in 2004. Google has increased eight times from the initial offer, approaching $ 200 billion.
Facebook revenue increased by 88% last year to $ 3,71 billion, while net income increased by almost two-thirds, to $ 1 billion.
Evaluation based on private markets trading can change depending on the actual number of shares to be found after the IPO. On 31 December, Facebook had 117.1 million class A shares and 1.76 billion Class B shares also, there are approximately 379 million restricted stock units and 259 million shares scheduled to be issued if shares from class A and B are exercised.
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