So Microsoft put $240 million into Facebook, valuing the social networking company at $15 billion. My ass. There is no such value. Here's how the negotiation actually went:
Microsoft: Give us exclusive access to your ads.
Facebook: Woo, that'll cost you. We're a premium property. We'll negotiate hard, like the Web 2.0 muthas that we are. We have a high valuation, you know.
M$: We can pay. How much?
FB: A lot.
M$: OK, $240 million.
FB: We're *NOT* giving you 40% of the company for that! [Stamps foot.]
M$: Who said anything about 40%?
FB: Well, that's what the last VC said. [Timid sniveling look.]
M$: Just exclusive access to the network. Keep your company.
FB: But that's not fair. How can we boost our valuation? You *HAVE* to take a stake. You just *HAVE* to! [Stamps foot harder]
M$: [Writing check] Just remember, no Google.
FB: But take a chunk.
M$: Fine.
FB: It's incredible. [Face of extreme cunning.] You're getting, wait for it, one point seven percent!
M$: Here's the check. Don't spend it all in one place, son.
FB: That makes our valuation $15 *BILLION*. [Big smile]
M$: Whatever.
FB: 15 BILLION. [Bigger smile]
M$: Sign here. Right where it says: NO GOOGLE.
FB: [Signs] 15 BILLION. Wippee.
Update: Apparently I was right. Facebook thought they were worth $3.75 billion (still a lot)
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