Facebook Rejects $8 Billion Valuation

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TechCrunch’s Michael Arrington says Facebook turned down a $200 million venture round that would have valued the company at $8 billion.

Mike says “a source with direct knowledge of the proposed transaction” told him Facebook CEO Mark Zuckerberg turned down the deal because the new investors wanted a seat on Facebook’s board.  Mark controls three seats on the five-person board. This source also tells TechCrunch that Facebook’s 2009 revenues will hit $550 million, up from $280 million in 2008.

We’ve previously heard that Facebook’s revenues are much lower than that and that if the startup’s value were calculated by comparing its profitability to Yahoo and Google’s, Facebook would be worth somewhere between $1.5 billion and $2 billion. We’ve heard Facebook could see a negative free cash flow of $100 million this year.

A Facebook rep says “Facebook is a private company, so as a matter of policy, we don’t typically share details about our financial plans or comment on rumour and speculation.”

Read it on TechCrunch: Facebook Turns Down $8 billion Valuation Term Sheet, Claims 2009 Revenues Will Be $550 million

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