I am a design engineer at Automattic, the company behind WordPress.com, working with the Theme Team to address the design concerns of millions of WordPress users.

Thursday, October 25th, 2007

Facebook is not worth 15 billion dollars

($240,000,000 / (0.016 + x)) != $15,000,000,000 Attention world: Microsoft did not pay $240 million simply for a 1.6% stake in Facebook. They paid $240 million for a 1.6% stake in Facebook and the privilege of being Facebook’s only ad supplier for visitors from outside the United States. So unless you’re valuing that privilege at [...]

($240,000,000 / (0.016 + x)) != $15,000,000,000

Attention world: Microsoft did not pay $240 million simply for a 1.6% stake in Facebook. They paid $240 million for a 1.6% stake in Facebook and the privilege of being Facebook’s only ad supplier for visitors from outside the United States. So unless you’re valuing that privilege at $0, stop spreading this ridiculous valuation estimate around.



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