The $15 billion valuation that Microsoft appeared to bestow on Facebook in 2007 provoked some scepticism – including within Facebook itself.
According to redacted court documents obtained, and somehow decoded by the AP, Facebook valued itself at $3.7 billion in June, when it was in court over a dispute with a rival social networking site.
Sure, Microsoft invested $240 million for a 1.6 percent stake in Facebook in October 2007. But that was for Series D preferred stock. So the $35.90 price per Facebook share value implied by the deal does not apply to the rest of Facebook’s equity.
In fact, Facebook lawyers told the court, the company actually values its shares at $8.88 share, the AP says. What’s happened to the share price during the economic slowdown since that time is anybody’s guess.