Photo: By Justin Sullivan/Getty Images and IPG
Now that Facebook is public, it’s worth asking how much Interpublic Group’s stake in the company is now worth.IPG—the ad agency holding company that owns McCann Erickson, DraftFCB, and Deutsch, among others—famously bought a 0.4 per cent stake in Facebook for just $5 million in 2006.
It then sold half that stake for $133 million last year, before the Facebook IPO. Keen to find out how many shares IPG now owns in FB, I contacted both companies. Neither has disclosed how big IPG’s current stake in Facebook is. IPG didn’t return two calls and Facebook said it would have no comment beyond its existing SEC disclosures.
So let’s do the maths and estimate the value of the IPG stake:
If the agency network currently owns 0.2 per cent of Facebook, and Facebook’s market cap is about $57 billion, then that would imply its stake is worth around $114 million.
That’s less than what it sold for before the IPO, but still an excellent return on a $5 million bet.
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