Faves for this Web page

  • This list of valuations seems more reasonable than others I have seen.

    Quoted: Putting a value on private companies is hard enough for insiders and venture capitalists who have full access to the company's financial statements. ...

    • eric - Apr 28 2008

      Wow. Do you remember when they turned down a valuation of $2 billion and I said they were insane? Guess they turned out right after all...

    • kabir - Apr 29 2008

      doesnt mean shit until the money's in the bank :)

    • eric - Apr 29 2008

      It does when they're taking money in the bank along the way at a $20 billion valuation! Ahem, Microsoft!

    • kabir - Apr 29 2008

      haha, touche' my friend!

    • mike - Apr 29 2008

      The $15B valuation was bogus in the original analysis as well. Microsoft made a payment of $240M to Facebook. PART of what they received was a 1.6% stake in the company. But that was not all they received. They also got EXCLUSIVE rights to all international advertising revenue on the site. To back-calculate a valuation, you have to subtract the value of that right from their payment.

      I don't know why nobody in the press writes about that. Probably because most people in the press don't want to use their brains and they just write whatever anybody else is writing.

    • mohit - Apr 29 2008

      in addition, i don't think it has been disclosed whether microsoft received common or preferred shares. if it was preferred, you also have to subtract the value of any preferred privileges from microsoft's payment.

    • eric - Apr 29 2008

      @mike and @mo: Good points and includes some info I did not consider. What I think nobody would argue against at this point, however, is that Facebook made a good decision NOT to sell out for $2 billion.

  • yong - Apr 28 2008 | news

    Quoted: Putting a value on private companies is hard enough for insiders and venture capitalists who have full access to the company's financial statements. ...

Add a Fave for this Web page

What happens when I press Publish?
Your Fave for this Web page gets shared with the Faves community. You can access it at any time by selecting "My Faves" from the menu above.
Why do you ask for my email address?
We use your email address to create an account, so you can easily find your Fave again at a later time.
Rate It

Separate each email address with a comma.
WE DO NOT SPAM | Please read our privacy policy.

Related Content from Around Faves

web 2.0

VIEW ALL

custom

VIEW ALL