

Cracks in Facebook - ttol
http://money.cnn.com/2008/05/12/technology/cracks_facebook_hempel.fortune/index.htm?postversion=2008051308

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redorb
I have a hard time reading 'only' and '145mm' in the same sentence, much less
right next to each other! - but I guess all things are relative. In this case
its relative to the MSFT 15b valuation which of course makes everything look
small.

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aneesh
It's not a $15B valuation.

Microsoft didn't invest all $240 million for the 1.6% stake. Some fraction of
that money was for the advertising deal that Microsoft got.

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streety
This article was published back in May. Although it's marginally interesting
reading it in hindsight I don't think it is terribly relevant to today.

~~~
jyu
"...I don't think it is terribly relevant to today."

This article is relevant because little has changed (from an outsider's
perspective) since May.

Imagine if you were a VC. One of your portfolio companies is deeply behind
revenue milestones, user acquisition rates are slowing, the potential sources
of big revenue never panned out. And you can't even change the CEO because you
don't have board control.

Fast forward from May to now. What has Facebook done? Raise $100mm more, add
comments to the newsfeed, start the fbFund competitions, and other things that
do not visibly address the revenues problem.

I'm really hoping that Facebook solves the revenue problem before they run out
of cash, but at this point I am doubtful.

~~~
aneesh
Facebook finances: [http://www.techcrunch.com/2008/01/31/facebook-finances-
leake...](http://www.techcrunch.com/2008/01/31/facebook-finances-leaked/)

2008 cash flow is supposed to be minus $150mm.

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nreece
The actual title of the article is "Finding cracks in Facebook", not "Cracks
in Facebook". Two totally different ideas, from a readers perspective.

