Tag Archives: initial public offering

Facebook Worth $25 Billion? Really?

Chart via TechCrunch

Private company valuations on SecondMarket (and other similar “exchanges”) make for great blog fodder, but I’m not sure I buy into the hype. The latest result for Facebook is a $25 billion valuation … for a company that celebrated being cash flow positive a year ago and has yet to turn a profit.

Queue the sock puppets and launch a black rocket. It’s 1999 all over again.

Let’s compare it to the actual values of public companies like AOL ($2.3 billion) and Yahoo! ($21 billion), as reported by TechCrunch today. Facebook at $25 billion without any real liquidity? I’m having trouble stomaching that one. Of course, I’m something of a skeptic, so take my opinions with a grain of salt.

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IPO Watch: TeleNav

TeleNav filed with the SEC Friday to go public. The Silicon Valley-based company hopes to raise up to $75 million in its IPO. The company’s largest venture capital backer is Menlo Ventures, which must have high hopes for the transaction. The IPO is being managed by JP Morgan and Deutsche Bank Securities. No date has been announced.

TeleNav has more than 11 million paying users (as of the end of September) and provides its services through Sprint Nextel and AT&T.

[Via Reuters]