$100M = 1% = Wow!
According to the Wall St. Journal, Microsoft has held preliminary discussions to invest $100-million in Facebook based on a valuation of $10-billion…or more. It’s astounding that $100-million would give Microsoft a 1% stake. Of course, a $100-million investment in Google right now would give you a 0.06% stake.
So what’s next? Has Facebook started an investment auction that will see Google commit to a $1-billion investment for 5%? How much cash does Rupert Murdoch still have left after buying MySpace and the Wall St. Journal?
One more thought: Does anyone in the tech world keep secret any more? Judging from leaks about deals being made (e.g. EMC-Mozy), new strategic initiative (Google’s Facebook-killer) and investments (Microsoft-Facebook), mnay people can’t help but spill the beans. Maybe this info-spillage is just a fact of life in this instant information/instant gratification age in which we live.
Update: Jeremy Toeman brings some sane thoughts to the blog-o-frenzy by pointing out that the WSJ is chock-o-block with speculation, coulds, woulds and may. Meanwhile, Mathew Ingram cranks up the speculation by suggesting Microsoft’s interest in Facebook could prompt Yahoo to acquire Facebook. Man, it’s great when bloggers get so hot and bothered! So many words, so many thoughts! Kara Swisher, meanwhile, takes a very healthy swipe at the financial fascination with Facebook, suggesting Silicon Valley is becoming more delusional by the minute.
