Facebook shuts down private-market trading as it prepares to go public

Facebook is shutting down trading in its stock on private markets as the social network prepares to go public.

The company told private exchanges such as SecondMarket and SharesPost to wrap up their auctions, sources said.

The move officially marks the end of a lucrative market for Facebook shares, which have traded for years through private hands at ever increasing valuations.

Facebook told SharesPost its final transaction would be Friday, moving up the closing date for a scheduled auction, according to Sam Hamadeh, the head of PrivCo, which provides research on private firms.

LinkedIn, Groupon and other pre-IPO companies also suspended trading in their shares ahead of their debuts.

Facebook pulled a similar move at the beginning of its IPO process in January as it sought to audit its shareholder count, but allowed trading to resume within three days.

Analysts said the social network is likely taking a final shareholder tally and will work out a valuation of its shares to set an opening stock price for investors.

Private investors have purchased Facebook shares at prices that value the company at more than $100 billion. A recent report from NYPPEX, a firm that specializes in private shares, said Facebook is worth closer to $71 billion.

However, the red-hot company could start the public bidding at just under $100 billion valuation, sources said.

Facebook is on course to go public by late April to mid-May; after May 15 it would have to disclose its first-quarter numbers, Hamadeh said.

Facebook CEO Mark Zuckerberg and his lieutenants have already filmed their video pitch ahead of a roadshow that could kick off next week, he said.

Zuckerberg is expected to be present during the roadshow, which should ease criticism that he has taken little interest in the process and has displayed even less regard for Wall Street etiquette. Zuckerberg was faulted for skipping an analyst meeting last week.