Facebook's Stock Options

eusman | karma 265 | avg karma 0.93 · 2007-10-25 22:11:32

Brin "We really started to grow (Google) during the bust of the dot com bubble," he said. "Their timing may be somewhat inverted." Google, he said, benefited from the discipline imposed on it by the bust. "I think that's an extra challenge that they face," he added"

it's obvious he is considering Facebook overvalued

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aston | karma 6570 | avg karma 4.21 · 2007-10-26 04:28:53+00:00

Can anyone confirm that the stock options offered from now on must be based on the valuation of the company from the most recent round of funding? I have a hunch Facebook's internal valuation's a ton short of $15 billion.

paul | karma 15522 | avg karma 13.76 · 2007-10-26 04:06:43

Common stock is generally given a lower valuation than preferred, but this will nevertheless cause that number to increase dramatically (probably 10x what it was a few months ago).