Facebook Valued At $124 Billion In (Wacko) Private Market Transaction [Business Insider]

Via Dave Kellogg; if the recent Facebook-related financial developments seem reasonable to you, I strongly encourage you to read A Short History of Financial Euphoria (a 1994 John Kenneth Galbraith classic) as well as the recent (and emphatically titled, at least in Amazon’s catalog) OVERCONNECTED: The Promise and Threat of the Internet

Over on SharesPost, an investor just agreed to buy Facebook stock at a price of $55 per share for an implied valuation of an incredible $124 billion. That's a 62X valuation multiple on Facebook's $2 billion 2010 revenues.

That's bizarre.

But the thing is, several other investors have submitted bids implying similarly astronomical valuations. One guy wants 1,000 shares at $60 a pop, implying a $136 billion market cap.

Facebook Valued At $124 Billion In (Wacko) Private Market Transaction