The VC firm owned 10% of Facebook, but has sold one-fifth of its stake for a price somewhere in the range of $500 million, and is no longer the largest venture holder in the company. Buyers reportedly include TCV, which may be in for as much as $200 million, and Andreessen Horowitz at around $80 million.
The big question is valuation. Are the buyers accepting that Facebook is worth $35 to $40 billion, or are they buying at a much lower price? At the Web 2.0 Summit conference the other day, VCs Fred Wilson and John Doerr had a disagreement on the secondary market, where investors buy limited stock, with Wilson suggesting that valuations in that market are not realistic or meaningful.
Regardless, it’s probably higher than the $15 billion valuation that Microsoft used when making its investment in 2007. That investment looks like genius now.
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