The $10 Billion Facebook
Posted by melting on May 27, 2009
How would you like to have 200 million dollars to pad your wallet just in case. For a cash cushion or strategic options. Facebook has found another sucker investor to do just that. Digital Sky Technologies has decided to hand over $.2 billion for what is roughly a 2% owners stake in Facebook. This deal values the preferred shares of Facebook to about $10 billion.
While it is challenging to truly determine the value of private companies, this will likely give a good idea. DST is not getting a seat on the board of directors, or becoming a strategic partner like Microsoft did over a year ago, when they plopped down $250 million. A second factor which details are still pending is DST announced they are planning to put down another $100 to by the common stock that many employees have earned over the last few years. While this is likely to be at a different valuation it may be more than the $4 - $6 billion rumored current transactions for common shares have been going for.
With their latest chapter, Social Graph Victory, coming to an end, this money will surely help Facebook in their next chapter.
Sources: Facebook, TechCrunch, All Things Digital
