Facebook May Not Raise Additional $500–Just $260

It’s all Facebook all the time here at SAI, and we’re happy to report that the WSJ’s latest estimate of the amount of additional cash Facebook is going to raise from that/those New York hedge fund(s) is $260 million, not $500, as we suggested earlier.  So what will it be?  $500?  $260?  $0?  The answer will reveal just how nutty Microsoft was to  pony up at $15B, or 100X revenue.  We’re on the edge of our seats.

The WSJ also included a couple of other controversial tidbits.  First, it repeated the universal assertion that Facebook will generate $150 million in revenue this year, but then said that it would be “cash-flow breakeven”–instead of earning the $30 million most other reports say.  This could be a distinction between cash flow and operating income, but we doubt it. 

And then there’s that fascinating question about whether Mark Zuckerberg is worth $3 billion (20% of equity) or $4.5 billion (30%).   As Peter Kafka noted earlier, the WSJ says 20%.