December 4th, 2008
Wouldn’t it be great to have a $15B valuation to acquire other companies?
With $15B you could throw around offers of hundreds of millions to other companies to acquire them and it would be too much of a dent. I guess thats all well and good until someone questions if you are really worth that much. In the case of Twitter, getting $500M offer ($400M worth of Facebook stock and $100M cash) just isn’t as tempting as it sounds. Although just the $100M cash is itself a lot of money, it isn’t such an awesome return for Twitter’s existing investors (Twitter has reportedly raised $20M already) for its popularity. That $400M? is really just funny money considering its valuation is based off the 1.6% it gave up for Microsoft’s $240M investment. There might be a chance all that funny money won’t be worth anything if Facebook suffers the same fate as Friendster.
Considering NBA China is only valued at around $2B, I would definately not agree Facebook was worth 7.5x that.
