Due To Revenue Decline, Bankers Lower Facebook IPO Pricing To $27-35 Range

We are hearing from bankers underwriting Facebook's initial public offering, that it will IPO at a $70 billion to $90 billion valuation, or $27-$35 a share. The reason for the valuation dropping below its speculated $100 billion mark is the sequential quarter-over-quarter revenue decline going into the first quarter revealed in its?recent S-1 amendment. ?While that's still going to be a landmark valuation for a consumer Internet company, but it could be a bit disappointing for some. "If y/y rev growth had accelerated, we could be talking LinkedIn multiples. Plus LinkedIn has expanding margins, which Facebook doesn't," said a source. (Just for reference, LinkedIn trades at a price-earnings ratio of 913. If Facebook debuted at a $100 billion valuation, that would be 100X its trailing net income.) The Wall Street Journal also reported that Facebook will debut at an $85 Billion to $95 Billion valuation, but we have our own independent sources who have confirmed this price range.

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