I totally believe you and you're right. We used one of those outside firms. They can credibly come up with lower valuations that might be discounted up to 30% below the closest capital raise, but anything lower is a scandal --- no matter what anyone says. They did a full market check and got a negotiated term sheet. It's hard to argue with that. You know what they might be doing? Something very cynical: they may have the price too low knowing that it will help them with recruiting, but, if they ever exit and the IRS or SEC comes calling, all their employees will get whacked. What will they say to them? Oops - sorry!

sggrf

MrMedia

It's pretty typical, actually, for private companies to get a 3rd-party firm to determine a valuation to use internally for setting employee option strike price.

That aside, no one knows the structuring of the deal Facebook struck with Microsoft et al. this round. MSFT clearly got something out of the deal than just stock (exclusive ads), so the blind multiplication there was the wrong from jump street. No clue what kind of quid pro quo was in it for Ka-shing, but odds are he got something, too. When it hits the books, who knows what the pre- and post- come out to?

ThatKid

Huh? There's no such thing as an internal valuation that's vastly different from the MSN price. That sounds like inappropriate accounting practices --- you can't have it both ways, in accounting or life.

sggrf

Regardless, if Facebook's as poised for growth as everyone says they are, you'd rather keep the shares than the money, no?

ThatKid

>>Van Natta's middle name is "Thomas." That's just bizarre, right?

so applying some new math here, based on sharing a first & middle name, i think that means you get 2/3 of his stock options, right owen?

maybe if u talk to someone downtown at City Hall, and you could even pick up the remaining third...

DaveMcClure500Hats

Rick

mandarin