Facebook Will Pay $500,000 To $1,000,000 To “Buy” An Engineer

Facebook bought Justin Schaffer’s flopped startup, Hot Potato

Facebook has found that one of the best ways to bring new talent into the company is to acquire small, failed startups and put their entreprenurial employees in charge of products.These are called “talent acquisitions” or “acqui-hires.” The people who started FriendFeed, Drop.io, Hot Potato, and Parakey all ended up at Facebook this way.

Today, the New York Times covered the trend.

In the story, the Times revealed this juicy nugget: Faceboook M&A guy Vaughan Smith says that when Facebook is deciding what to pay for a startup “engineers are worth half a million to one million.”

So now we know: If Facebook were to end up buying group-texting startup Groupme, it will probably pay $7 million to $13 million. We know that’s not what those guys want to be when they grow-up, but it’s not a horrible fall-back plan.

Click here for a tour of GroupMe >>