Facebook’s Internal Valuation is $3.7 Billion
You heard it right, straight from the horse’s mouth. Quite sensationally, details of Facebook’s recent settlement with the guys who Mark Zuckerberg may or may not have stolen code and ideas from (ConnectU) have been uncovered by the Associated Press by simply copying and pasting covered-up parts of electronic versions of the settlement’s documents.
That’s right: Facebook apparently tried very hard to keep this under wraps, but were undone by a simply copy and paste. Truly spectacular.
Among the goodies in the report is an internal valuation of Facebook that falls well short of the $15 billion floated when Microsoft made their investment in the company in 2007. Facebook’s own appraisal puts the number at around $3.7 billion, which puts the stock price at $8.88. Microsoft’s valuation puts it at $35.90 per share.
This means that number being stated as the amount of the ConnectU settlement ($65 million) is way off. ConnectU was given $20 million in cash and additional common stock believed to be valued at $45 million. Well, since we now know that the stock’s value is much lower than previously though, the final figure for ConnectU will be in the range of between $7 and 11 million.
Of course, the most interesting part of this story to me is AP’s dead-simple punking of Facebook. You have to love it.
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