Kara Swisher’s sources say Facebook is mulling another investment round at a massive valuation. It would be “quite large, well beyond” the $25 million round in 2006 that valued the company at $525 million, she says. Pick a valuation for this round: $6 billion? $10 billion? The valuation would likely be far less for a mere financing, but you’ll probably still need to be between those numbers if you want the whole company.
The money would be used for expansion and/or acquisitions, and potential investors include would-be acquirer Microsoft. Some Facebook brass aren’t eager to link up further with Microsoft, which already has an ad-serving deal with the company. But no matter: If the economy doesn’t tank (and probably even if it does), Facebook will have its pick of investment partners. The timing here is smart: the iron-clad rule of financing is to raise cash when you can, not when you have to, and Facebook is riding high. Also, if the economy does crater, having a massive war chest will be a huge competitive advantage.