A Russian investment firm has offered to buy $200 million of preferred stock in Facebook at a $10 billion valuation, the WSJ’s Jessica Vascellaro says. Facebook has not yet responded to the offer.
The Russian firm, Digital Sky Technologies, has also offered to buy an additional $100-$150 million of common stock at a $6.5 billion valuation. This offer would be used to buy employee stock, and the size of the purchase would depend on how much stock employees wanted to sell.
The WSJ report follows a TechCrunch report a few days ago that said Facebook had turned down an offer for $200 million at an $8 billion valuation and had another offer at a $6 billion valuation. It’s not clear whether the $8 billion was a different offer, an improved offer(s) from the same firm, or whether TechCrunch’s report was slightly inaccurate.
(A source close to the situation told us at the time that TechCrunch’s report was wrong, but it appears to have been very close to accurate. Our apologies to TechCrunch for the scepticism).
In any event: Yesterday, we argued that Facebook was now officially underhyped and that an offer to buy preferred stock at an $8 billion valuation wasn’t inconceivable. It appears we understated the case.
See Also: Facebook Is Now Underhyped