The two companies said on Wednesday that Microsoft would pay $240 million for a 1.6 percent stake in Facebook. The investment values Facebook, which is three and a half years old and will bring in about $150 million in revenue this year, at $15 billion.Aside from the fact that it makes the company I work for, Zannel, ostensibly more valuable, this makes me wonder why any one would go to work for Facebook from hereon out, since it is now a pre-IPO start-up where the company is priced so high that any options they get would be unlikely to ever increase in value enough to make it worth your while.
Thursday, October 25, 2007
Buy, Baby, Buy
There will be much more said about this in the future, but thanks to Microsoft there's a whole lotta valuation goin' on:
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It all depends on the pricing & time structure of the incentive instrument (more likely warrants than options). Management can always structure these things so they're valuable. (Of course they can also always make them merely *appear* to be valuable, too).
btw: Besides selling my email address w/o my consent to Viagra peddlers & porno distributors how does facebook make money--advertising?
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