Facebook Raising $150M For Staffers’ Stock Buy Back
-
Comments (View)
- Text Size: A A
-
Email
-
Share
Facebook is wrapping up $150 million in financing as it seeks to buy back stock from hundreds of its employees, Venturebeat reports, citing unidentified sources. This move comes a year after the social net raised an additional $100 million in funding, on top of the $360 million in capital it netted over the previous six months. Since existing backers such as Accel, Greylock, Founders Fund, among others, found it difficult to supply such a large amount this time, Facebook has apparently been turning to Asian investors as it seeks to close out the round.
SEE ALSO: Forecast: Social Net Ad Spending To Drop In ‘09; MySpace To Suffer, But Not Facebook
Last month, Facebook COO Sheryl Sandberg (pictured, right) said the company was doing fine financially, adding that, “We might take money—but it doesn’t mean we need to.”
Facebook did not comment on the report, but it has acknowledged a program that allows staffers to sell up to 20 percent of their common-stock shares. Most of the recent speculation about Facebook’s funding plans have revolved around its ability to meet rising server costs and weathering the online ad slump, even though eMarketer still expects the site to see ad revenues rise 9 percent this year. But as Venturebeat hears it, the goal of stock buyback (which would target some 15 million common shares currently outstanding) would be to give its employees greater “liquidity.” This is becoming a favorite strategy among ostensibly valuable but as yet unprofitable enterprises, considering that the IPO market remains too challenging.
The transaction values each of the 15 million shares at $10 each. But at the moment, those shares are actually worth less than $1, Venturebeat says.
Photo Credit: Flickr/TechCrunch50-2008
Posted In: Money, M&A & Venture Capital, Venture Capital, Social Media, Companies, Facebook
Barnes & Noble (Paid)
Social Standing
Which media brands are getting a lift from Tweeters and bloggers right now -- and which are getting panned?
Show Me: