Facebook Gets $60 Million Chump Change: A Down Round?

It’s a far cry from the $250-$500 million Facebook was originally said to be seeking, but the company has apparently been able to persuade one of the world’s richest men to toss it some couch change. Kara Swisher reports that Hong Kong billionaire Li Ka-shing has agreed to invest $60 million, which brings Facebook’s total round to about $300 million.

No word on the Li Ka-shing valuation, but he does appear to have obtained a warrant that gives him the right to invest another $60 million, presumably at the same price. The warrant is worth something, so the all-in valuation was probably less than $15 billion. (One could argue that Microsoft got ancillary benefits, too, so Li Ka-shing’s warrant may bring the two deals to parity).

Kara also reports that Providence Equity Partners, the folks who (mystifyingly) threw $100 million at Hulu, were originally interested in the deal, but hit the road when informed that it wouldn’t get a board seat.

More capital is good, but between this disappointing funding round and the Beacon bomb, Facebook is certainly flying lower than it was a few weeks ago.

See Also:
Facebook Caves on Beacon, Retains Secrecy Fetish
Facebook Users to Facebook: Stop Lying To Us
Who Else Wants to Invest in Facebook? No One?

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