mohit | Shared With: Everyone - Apr 29 2008 | facebook, microsoft, valuation
One of the reasons for why Microsoft's $240M investment for 1.6 percent of Facebook does *not* necessarily imply that Facebook is worth $15B. Microsoft very likely got some "preferred" treatment in this deal.
Quoted: Microsoft is probably getting some kind of option for their $240 million…. We don't know what it is, but it's probably the right to purchase shares of Facebook at some known price in the future. The value of that option is very hard for business journalists to calculate, but it's NOT hard for Microsoft's CFO to calculate, and it's probably very significant. You have to deduct the value of the option from the purchase price before you can multiply and get the valuation. Almost certainly, the $15 billion valuation is ridiculous.
The other reason (curiously omitted) is that Microsoft received exclusive rights to international advertising on Facebook. This also has to be deducted from the purchase price.
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mohit | Shared With: Everyone - Feb 12 2008 | facebook, bill gates, microsoft, social networking, social software
Quoted: MICROSOFT billionaire Bill Gates has deleted his Facebook account after being hassled by thousands of fans
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mohit | Shared With: Everyone - Dec 08 2007 | facebook, microsoft, ballmer, valuation, social networking
Quoted: Ballmer continued to dance around the matter: "Will Facebook be worth $5 billion, $15 billion or $50 billion some years down the line is really up to their team and how they take it forward." Maybe it's just us, but Ballmer makes Microsoft sound less like a partner and more like a spectator.
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mohit | Shared With: Everyone - Oct 28 2007 | facebook, social networking, microsoft, technology
Microsoft paid $240 million for 1.6 percent of Facebook *and* advertising rights. So, it is a little misleading to say that the Microsoft deal values Facebook at $15 billion. Anyways, this article helps explain how much advertising inventory Microsoft gets.
Quoted: Just how important is the international part of the equation? Facebook in September racked up 14.7 billion page views in the United States, comScore reported – just 43% of its worldwide total. Yes, the validity of the page-view metric is debatable, but for Microsoft’s sales organization, that is a flood of new inventory any way you look at it.
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mohit | Shared With: Everyone - Oct 25 2007 | facebook, microsoft, hedge funds, investing
Quoted: Consider this a rumor at this point.
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If true, that would give Facebook a $750 million war chest, which is more than most companies make in an IPO. That should be more than enough to pay for those 700 employees next year.ShareViewed: 7 Times
mohit | Shared With: Everyone - Oct 24 2007 | facebook, technology, microsoft, social software, social networkingI was about to add the following comment to my Facebook dot, and then found that Marc Andreessen blogged about it already...
Quoted: [October 2] Steve Ballmer, the Microsoft chief executive, believes that the craze for individual social networks such as Facebook risks being exposed as a "fad"...
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[October 24] Microsoft Corp. agreed to invest $240 million for a 1.6% stake in Facebook Inc. that values the social-networking site at $15 billion, beating Google Inc. in a closely watched contest.ShareViewed: 11 Times
mohit | Shared With: Everyone - Oct 24 2007 | facebook, microsoft, social software, social networking
Had to redot. This is a nice valuation for Facebook (P/E = 500).
Quoted: Microsoft will invest $240 million for a 1.6 percent stake in the company, said Adam Sohn, a director in Microsoft’s online services group. The investment values the three-year-old Facebook, which will bring in about $150 million in revenue this year, at $15 billion.
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mohit | Shared With: Everyone - May 25 2007 | facebook, social networking, microsoft, case studies, blue dot, toread, web 2.0
Some case studies re: the Facebook platform.
Quoted: To highlight how easy it is(supposedly) to integrate with the Facebook Platform, Facebook is distributing these 5 cases studies for Red Bull, Box.net, Lending Club, Microsoft Popfly and Slide.com. Embedded in Flash format for your perusal.
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- hbhanoo - Sep 28 2007
- derek - Sep 28 2007
You must be Mohit's friend before you can comment on this Fave.put glasses on him and he begins to look like a young billg except with notions of being cool. or maybe billg had those notions as well?
I kind of have to agree there.
Send Mohit a friend request or a personal message instead.