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  • Gerrit Eicker 08:14 on 12. February 2009 Permalink
    Tags: , AP, , ConnectU, , ,   

    Facebook vs. ConnectU 

    AP, uncovering the Facebook/ConnectU settlement: The internal valuation of Facebook is $3.7 billion; http://tr.im/fw1k  

     
    • Gerrit Eicker 08:22 on 12. February 2009 Permalink | Reply

      AP: “In a transcript of a June court hearing that was closed to the public, lawyers arguing over a legal settlement revealed Facebook’s own appraisal had priced its privately held stock at $8.88 per share, giving it a market value of about $3.7 billion. … Facebook, which runs the Internet’s largest social network, made the assessment after striking an October 2007 deal with Redmond, Wash.-based Microsoft. As part of a broader advertising partnership with Microsoft, Facebook agreed to sell a 1.6 percent stake to the software maker for $240 million. – The Microsoft investment implied Facebook’s stock was worth $35.90 per share – a figure that was relied upon in the settlement of a lawsuit that accused the company’s founder, Mark Zuckerberg, of stealing the idea for his online hangout from three former classmates who started another social network called ConnectU. … Under their settlement, Facebook agreed to pay ConnectU $20 million in cash and 1,253,326 shares of common stock. The stock was worth $45 million, based on the Microsoft valuation, but only $11 million under Facebook’s own appraisal. – That means ConnectU received anywhere from $31 million and $65 million for settling the suit, depending on which stock valuation is used.”

      pC: “In an odd piece of symmetry, the lawsuit is in the news for another reason: legal pub The Recorder reported that Quinn Emanuel Urquhart Oliver & Hedges, the law firm representing the twins, published a brochure bragging about the $65 million settlement obtained in the case. Tiny problem – the amount was supposed to be confidential. Also, the law firm was no longer working for twins when the judge finalized the settlement and is now in a fee dispute.”

    • Gerrit Eicker 11:35 on 12. February 2009 Permalink | Reply

      Mashable: “This puts Facebook into a very uncomfortable situation for several reasons. First, it’s never good when the value of your company is suddenly perceived as being 4-5 times less than before. Secondly, although preferred stock may (but that’s debatable and depends on the nature of the stock) be worth more than common stock, I doubt that Microsoft is happy to realize they’ve severely overpaid their share in Facebook. And thirdly, the fact that the economic situation has been steadily worsening after June 2008 doesn’t help matters at all, and one can argue that Facebook is probably worth far less – by their own standards – than the aforementioned 3.7 billion. That’s the danger of being overvalued and overhyped; if presented with evidence to the contrary, you might soon find yourself sinking far lower than you realistically should.

  • Gerrit Eicker 08:50 on 16. June 2008 Permalink
    Tags: , AP, , Exerpts, , ,   

    AP to Define Standards for Excerpts 

    The AP (Associated Press) will attempt to define clear standards regarding excerpts and its copyright; http://is.gd/ydz

     
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