[tonystubblebine]

I've never understood if the $15B valuation is real either (although I understand that it's quoted by everyone as being real). The original $15B number comes from an investment that Microsoft did for a share of the company plus advertising consideration.

If you just valued the company on the share then it would be worth $15B but since there were other considerations you can't know at all what the valuation was.

I've heard of follow-on investments but I never heard any hard facts about the valuation of those investments.

On the other hand, I've heard people who should know (actual VCs, TechCrunch, press) say FB has a $15B valuation. I just don't understand how that's the case. Is it bogus or what is the piece of information that I'm missing?

[mattmaroon]

Without knowing the details on the MS deal or the follow on funding, it's hard to say. I would speculate, solely from what I've read, that MS's investment values them at $15 billion while giving them the right to run ads for which they'll have to pay a certain amount as well. So in the case, and assuming other investors also valued them at $15b, that's their actual valuation.

[staunch]

I recall Zuckerberg admitting at SXSW they only valued it at that so that Microsoft could invest their cash and not suck up a big percentage of the company. That would mean not even Zuckerberg pretends its worth $15 billion. It seems a bit lame to repeat this valuation as if Zuckerberg is running around yelling "My company is worth $15 billion!" because he's definitely not doing that.

[Harj]

as if Zuckerberg is running around yelling "My company is worth $15 billion!" because he's definitely not doing that

well current hires are getting their stock at that valuation so the net effect is the same

[nostrademons]

Confirmed or assumed? If this is true, it's a big point against FaceBook's continued success, because it means current employees are underwater until FaceBook's worth more than Ford. One of the big motivators for a startup employee is seeing those options you got for pennies suddenly being worth dollars; if those options won't be worth anything for the foreseeable future, there's little reason why good employees would choose to work at FaceBook instead of Yahoo or Adobe or any of the other mature tech companies.

[Harj]

i know it for a fact

[mattmaroon]

Regardless of what Zuckerberg says, it's the valuation. It doesn't matter why. It's a simple mathematical equation. He can feign humility all he wants, but legally and technically speaking, their valuation is $15 billion.

I don't know any of their investors, but I'd be willing to bet my left nut that they'd be angry if the next funding round values them at $10b.