Risk
12/28/2010
12:13 PM
50%
50%

Facebook Value Leaps 56% To $41.2 Billion

The social media giant led strong gains among privately held social media companies, including Groupon, Zynga, and Twitter, in the second half of 2010, finds analyst study.

Flock Browses All Your Social Connections
(click image for larger view)
Slideshow: Flock Browses All Your Social Connections
Privately held social media firms are gaining in value, with rock star Facebook now worth more than better-established publicly held businesses such as eBay and Yahoo, a report shows.

In the past six months, Facebook's value grew 56% to $41.2 billion, according to securities firm Nyppex. The value of 11 privately held Internet social networking businesses increased by a total of $20 billion -- or 54% -- between June 30 and December 1, the firm determined. Groupon, Zynga, and Twitter all are valued at more than $2 billion, Nyppex said.

At $41.2 billion, Facebook is worth more than giants across many industries, including Viacom, CBS, and Time Warner, said Laurence Allen, managing member at Nyppex. The securities firm valued eBay at $32.8 billion and Yahoo at $18.4 billion. Google -- valued at $149 billion -- and Amazon -- at $73.5 billion -- still lead the pack. Zynga and LinkedIn's values dropped slightly, Nyppex said.

"We try to be students of venture history, and we think this is a milestone event that's taken place in the last six months," Allen told Digital Trends.

The companies in the study are privately held, with no immediate plans to file initial public offerings (IPOs). Nyppex generated the research for those interested in acquiring a piece of Internet startups, typically buying stock from existing shareholders, such as employees, in deals called secondary transactions. The volume for secondary-transaction deals could hit $4.9 billion this year, as companies delay IPOs, but investors pursue partial ownership of startups, Allen told Bloomberg.

"This trend will create even more pressure on portfolio managers to evaluate how to participate in growing private companies," he told the news organization. "We get new buy orders weekly from institutions trying to buy secondary shares in private social-media companies for the first time."

Driven, perhaps, by this increased volume, the Securities and Exchange Commission is scrutinizing trading in private companies, the New York Times reported on Monday. The agency has, in fact, sent information requests to a number of participants in the buying and selling of stocks at Facebook, Twitter, Zynga, and LinkedIn, the Times said, citing two people with direct knowledge of the inquiry.

Although details of the inquiry are limited, several securities lawyers said the action could be related to determining the number of shareholders at these social media companies, the Times said. As long as the businesses have fewer than 500 shareholders, they do not have to disclose financial results to the public. As soon as a company has 500 or more shareholders, SEC rules dictate a company must publicly share its financial results.

In March, Facebook stopped allowing current employees to sell stock. Now only former workers can offer their stock for sale. The company also put into effect an "insider trading" policy, and gives newly hired Facebook employees restricted stock that only have value if the company goes public, according to the Times.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Register for Dark Reading Newsletters
Dark Reading Live EVENTS
INsecurity - For the Defenders of Enterprise Security
A Dark Reading Conference
While red team conferences focus primarily on new vulnerabilities and security researchers, INsecurity puts security execution, protection, and operations center stage. The primary speakers will be CISOs and leaders in security defense; the blue team will be the focus.
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: This comment is waiting for review by our moderators.
Current Issue
Security Vulnerabilities: The Next Wave
Just when you thought it was safe, researchers have unveiled a new round of IT security flaws. Is your enterprise ready?
Flash Poll
[Strategic Security Report] Assessing Cybersecurity Risk
[Strategic Security Report] Assessing Cybersecurity Risk
As cyber attackers become more sophisticated and enterprise defenses become more complex, many enterprises are faced with a complicated question: what is the risk of an IT security breach? This report delivers insight on how today's enterprises evaluate the risks they face. This report also offers a look at security professionals' concerns about a wide variety of threats, including cloud security, mobile security, and the Internet of Things.
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2017-0290
Published: 2017-05-09
NScript in mpengine in Microsoft Malware Protection Engine with Engine Version before 1.1.13704.0, as used in Windows Defender and other products, allows remote attackers to execute arbitrary code or cause a denial of service (type confusion and application crash) via crafted JavaScript code within ...

CVE-2016-10369
Published: 2017-05-08
unixsocket.c in lxterminal through 0.3.0 insecurely uses /tmp for a socket file, allowing a local user to cause a denial of service (preventing terminal launch), or possibly have other impact (bypassing terminal access control).

CVE-2016-8202
Published: 2017-05-08
A privilege escalation vulnerability in Brocade Fibre Channel SAN products running Brocade Fabric OS (FOS) releases earlier than v7.4.1d and v8.0.1b could allow an authenticated attacker to elevate the privileges of user accounts accessing the system via command line interface. With affected version...

CVE-2016-8209
Published: 2017-05-08
Improper checks for unusual or exceptional conditions in Brocade NetIron 05.8.00 and later releases up to and including 06.1.00, when the Management Module is continuously scanned on port 22, may allow attackers to cause a denial of service (crash and reload) of the management module.

CVE-2017-0890
Published: 2017-05-08
Nextcloud Server before 11.0.3 is vulnerable to an inadequate escaping leading to a XSS vulnerability in the search module. To be exploitable a user has to write or paste malicious content into the search dialogue.