DISQUS

Mathew's comments: Ad agency takes stake in Facebook

  • Josh · 3 years ago
    Mathew, If I read this right, Interpublic group is getting More than just .5 percent, they are also getting $10 million in advertising. This would push the (estimated) valuation downwards, as it is not a straight cash-for-shares deal. Someone please tell me if my brain is not working properly and I'm misreading the story.
  • Mathew Ingram · 3 years ago
    You're right, Josh. They will of course be getting the value of the advertising as well, although I don't think that changes the overall math that much. But good point.
  • Paul K. · 3 years ago
    I hate to rain on this billion-dollar parade, but the $2-billion valuation is pretty dubious stuff. Dan Primack says that insiders tell him there is a big disconnect between the equity buy, the ad spending, and Facebook's valuation. How big? Dan's insider says the valuation is still sitting around $550m, where it was earlier this year.