Facebook's $200M Investment Values Co. At $10B - NYTimes.com
It seems Facebook has been given a $200m boost for 2% of stock valuing the company at $10bn. This is significantly less that the $15bn that Microsoft's $240m stack valued them at. The investment came from Digital Sky Technologies which is a Russian outfit.
Guessing it would seem Facebook have had internal differences about creating revenue or increasing the user base (Facebook now has around 200m active users). The co-founder left the company allegedly for wishing to increase revenues and more recently the CFO left too (he wanted to increase revenues) but the official reason was that he wasn't suitable for an IPO.
This will give Facebook some breathing space allowing them to continue operations as their advertising and other revenues do not yet meet their spend. At some point revenues must become the primary focus for the company or they'll run out of cash.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment