Sramana Mitra on Facebook


Mitra comes close to making sense of the mythical $15bn valuation, ie that multiplying up Microsoft’s investment to a full 100% and calling that the price-tag is nonsense.  Microsoft paid what they had to ($240m) to get the stake they wanted (1.6%).  That doesn’t mean that they, or anyone else would pay (100/1.6=) 62.5x that to acquire the whole company.

The challenge remains for Facebook to "show me the money".


About Andrew Munro

An independent business consultant, interim manager and writer, Andrew operates through his company, Burning Pine Ltd (
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