Private Trading Raises Twitter Valuation to $7.7 Billion


The latest auction of Twitter shares on Sharespost valued the company at $7.7 billion, which is almost twice as high than Twitter’s valuation after a round of funding in January this year.

According to Sharespost, a secondary market that lets investors trade with otherwise illiquid assets, investors have agreed to buy 35,000 shares of Twitter’s Series B preferred stock at $34.50 per share. Multiplying that figure with the 223.7 million fully diluted Twitter shares listed by Sharespost one gets a staggering $7.718 billion.

Facebook has experienced a similar growth on secondary markets in the last two years: after being valued a mere $9.5 billion in November 2009, a round of funding in January this year valued it at $50 billion, with the latest trades with the company’s shares pushing the number even higher, to $65 billion.

What do you think? Are these valuations based in real expectations of these companies’ future performance, or have we entered another bubble? Please, share your opinions in the comments.

More About: private market, secondary market, sharespost, trading, twitter, valuation

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