According to new study about the explosive growth of privately held Internet social media companies, Facebook so far being the most impressive, which it estimates is significantly more than eBay or Yahoo. Facebook value is up by 56 percent since the middle of the year 2010.
According to a research by New York securities firm Nyppex, Facebook’s “enterprise value” is $41.2 billion, far more than other fast-growing startups such as Twitter, LinkedIn and Groupon, all of which have not yet launched an IPO.
Nyppex estimate the worth of Facebook and other private social Internet companies by using data from private stock trades by individual and institutional investors. Since it is difficult to calculate a private company’s market value, Nyppex arrived at company’s enterprise value, which includes the claims of all the security holders in these companies, including bondholders and preferred shareholders, minus its cash on hand.
NYPPEX’s study also found that, between June 30th and December 1, 2010, the value of 11 privately held social media companies grew by a total of$20 billion or 54 percent, and much of this growth came from Facebook.
According to NYPPEX enterprise value of Google at $149 billion, $73.5 million for Amazon. Both Google and Amazon are already publicly traded companies. EBay was valued at $32.8 billion and Yahoo at $18.4 billion. NYPPEX estimates that Groupon’s enterprise value grew at a stunning rate, by 303 percent to reach $3.6 billion. Twitter grew by 131 percent to reach $2.1 billion, while Linkedin and Zinga fell in value.