Facebook’s Valuation Keeps Going Up. Where’s the Cap?

Keep smiling, Mark.

In a recent email from SecondMarket, the latest auction of Facebook shares hit $28.26, up 24% from just before the holidays and putting the unofficial valuation north of $70 billion. How high will it go?

Any speculation regardless of one’s level of expertise is futile. This is uncharted territory – an Internet firm with no tangible products other than advertising skyrocketing in prominence and taking over the attention of the online world.

Here is the body of the email:

Subject: Privileged and Confidential – SecondMarket’s Facebook Auction Update

To Facebook market participants:

Thank you to those who participated in this week’s SecondMarket auction for Facebook shares. The auction was successful and fully cleared at a per share price of $28.26. Next week, the floor price will be $26.25 and we will require a minimum sale of 25,000 shares. In observance of the national MLK, Jr. holiday, please find the adjusted auction timeline for next week below.

If you own shares that you are eligible to sell and wish to participate as a seller, please complete the attached Seller Information Form and submit it to SecondMarket at [email protected] by Thursday, January 20 at 7:00 PM EST.

Please see below for detailed results on previous auctions and for next week’s adjusted auction calendar:

Previous Auction Results:

Total Shares Cleared to Date: 2,721,265 over five auctions

Clearing Price in Most Recent Auctions:
January 12, 2011: $28.26
December 15, 2010: $22.75
December 8, 2010: $21.90
December 1, 2010: $21.01

Next Week’s Adjusted Auction Timeline:

• Thursday, January 20 at 7:00 PM EST – Seller Information Forms due

• Thursday, January 20 at 8:00 PM EST – Buyers informed of share quantity available and minimum purchase amount

• Monday, January 24 at 12:00 PM EST – Buyer Information Forms due

• Monday, January 24 at 5:00 PM EST – Participants informed of auction results

• Monday, January 24 at 8:00 PM EST – Transaction documentation distributed to buyers and sellers

• Wednesday, January 26 at 4:00 PM EST – Completed transaction documentation due from buyers and sellers

• Wednesday, January 26 at 7:00 PM EST – Notice sent to Facebook, Inc.

By reading this email, the recipient acknowledges and agrees that all of the information contained herein is confidential and that the recipient will keep this information confidential. The recipient further agrees that it will not copy, reproduce, or distribute this email in whole or in part.

Please contact us at [email protected] or 212.668.3919 if you have any questions.

Please note that the information in this email does not constitute an offer to sell to, nor a solicitation of an offer to buy from, nor shall any securities be offered or sold to, any person in any jurisdiction in which such an offer, solicitation or sale would be unlawful.

Regards,

Boyd