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Facebook Passes EBay in Value, Becoming No. 3 U.S. Web Company

Facebook Passes EBay in Value, Becoming No. 3 U.S. Web Company

Facebook’s stock is trading at more than $16 on SecondMarket Inc., an exchange for shares of privately held companies, said a person familiar with the latest pricing data. That would put its worth at about $41 billion, more than EBay’s $39.3 billion valuation on the Nasdaq Stock Market. Facebook only trails Amazon.com Inc., worth $74.4 billion, and Google Inc., valued at $192.9 billion, among U.S. Internet companies.

The company expects sales of at least $1.4 billion in 2010, up from about $800 million last year, two people familiar with the matter said earlier this year. Facebook may not have an initial public offering until 2012 or later, giving it time to focus on growth, the people said.

Facebook makes money from ads and a credits program, which lets people buy virtual items in online games. The company has attracted such advertisers as Coca-Cola Co., JPMorgan Chase & Co. and Adidas AG. It also has maintained ad prices, even as its user growth creates a surge of space for commercial messages, Facebook said in August.

Facebook lets companies craft campaigns to reach specific customers by age, location, hobbies and other attributes, making it more appealing to marketers. They’re also eager to reach all those millions of users, said Hussein Fazal, chief executive officer of Toronto-based AdParlor.

source: http://www.bloomberg.com/news/2010-11-15/facebook-passes-ebay-in-value-becoming-
no-3-u-s-web-company.html

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