http://blogs.reuters.com/reuters-dealzone/2008/05/09/pe-hub-facebooks-valuation-problem/ Behind the deals and deal-makers Wed, 9 Jul 2008 09:20:22 +0000 http://wordpress.org/?v=2.3.3 http://blogs.reuters.com/reuters-dealzone/2008/05/09/pe-hub-facebooks-valuation-problem/#comment-333952 NewsVisual Fri, 09 May 2008 21:42:05 +0000 http://blogs.reuters.com/reuters-dealzone/2008/05/09/pe-hub-facebooks-valuation-problem/#comment-333952 At the time that Microsoft Corp purchased a small share of Facebook, the criticism was relatively muted, and it’s only belatedly that the deal’s critics have become more vociferous in denouncing what they perceive to be its many downsides, including its overall lack of prudence on the part of Microsoft. "Microsoft’s October purchase of a 1.6 percent Facebook stake implicitly valued the social-networking Web site at $15 billion. Even at the time, some people questioned such an eye-popping valuation. But as the months have passed, the number is looking even more bubbly," The New York Times reported in an online article on Friday. This raises the question as to whether the company’s Board of Directors are protecting the interests of the company’s shareholders. At the time that Microsoft Corp purchased a small share of Facebook, the criticism was relatively muted, and it’s only belatedly that the deal’s critics have become more vociferous in denouncing what they perceive to be its many downsides, including its overall lack of prudence on the part of Microsoft. “Microsoft’s October purchase of a 1.6 percent Facebook stake implicitly valued the social-networking Web site at $15 billion. Even at the time, some people questioned such an eye-popping valuation. But as the months have passed, the number is looking even more bubbly,” The New York Times reported in an online article on Friday. This raises the question as to whether the company’s Board of Directors are protecting the interests of the company’s shareholders.

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