I clicked on Search Engine Land in my feed reader today and nearly crapped in my best pair of GAP jeans. Barry Schwartz posted a piece about Facebook. The title is “Microsoft May Buy $10 Billion Stake In Facebook” and the content is:
Microsoft Is in Talks To Buy Facebook Stake from the Wall Street Journal reports that Microsoft is in talks with Facebook to place a $10 billion stake in the company, giving Microsoft a 5% stake in Facebook.
Everybody I sent that too read it the same way I did: MS is dropping $10B into Facebook. That’s actually not the case. If you read the WSJ piece you’ll find that MS is looking to drop somewhere in the neighborhood of $400M for a 5% stake. The math on that gets you to $10B. C’mon Barry – linkbait is linkbait and I’m totally on board with it but I think you’re completely misleading this time.
My favorite line in the article is:
The company expects this year to have a profit of $30 million on revenue of $150 million, according to people familiar with the matter. Based on that, a $10 billion valuation for the company is sky-high.
Sky-high? SKY-HIGH!! I hereby award the understatement of the year to the WSJ.
I still don’t understand how turning me into a zombie, throwing sheep at me, giving me virtual drinks and allowing me to know when you’re at work, at home, on the bus or picking your nose is worth a potential $10B but maybe I’m just stuck in my ways at the tender age of 34.