Business Week notes:
The prices for Facebook shares in these transactions are far below the $15 billion level. [Laurence] Albukerk, the founder and managing director of EB Exchange Funds, says two current directors and one former executive recently contacted him about selling some of their stock for a $5 billion valuation. He also says two investment firms have bought large chunks of Facebook stock at a valuation of about $3.75 billion.
$3.75 billion. Not too far off the “imperfect mashup” estimate.
UPDATE: Fred Wilson sheds light on the discount. In his eyes, it’s just compensation for a lack of liquidity…
As exits via IPO and M&A become more and more difficult, I sure hope the secondary market will step in to fill the gap.
…and it seems, a sign of the times.
I suspect we’ll soon see some type of organized, internet-based exchange(s) pop-up and try to fill the gap, although I also suspect that most attempts at intermediation in a market reliant on close personal relationships and confidentiality will also fail. But, there is probably some business out there for all the deals that aren’t Facebook-level in profile.