When Facbook and the ConnectU founders who say Facebook founder Mark Zuckerberg stole their code settled in February, ConnectU founders Cameron Winklevoss, Tyler Winklevoss and Divya Narendra figured they were getting stock in a company worth $15 billion. Not so, according to Facebook laywers and the federal judge who ruled in their favor. From the Judge's ruling:
Apparently, in October 2007, Facebook and Microsoft issued a press release stating Microsoft would “take a $240 million stake in Facebook’s next round of financing at a $15 billion valuation.”... Defendants [Facebook] proffer evidence that subsequent to the press release, in the regular course of its operations, Facebook’s Board of Directors determined a value of the company’s “shares” which was different than the valuation disclosed in the press release.
So while Facebook was happy to sell 1.6 percent of the company to Microsoft for $240 million for a $15 billion valuation last fall — and tell the press all about it — remember, that doesn't mean the company is actually worth $15 billion. In fact, a Silicon Alley Insider commenter reports: "Try $2 billion to $3 billion. An owner is out trying to peddle common stock to VC's right now. The price is under $4 billion for sure."(Photo by AP/Ruttle)