2. Exemplarily speculated as to what the money is being used for after each successive round of financing.
3. Exemplarily provided an explanation behind the company’s bubbly corporate valuation.
4. Exemplarily determined how outside investors are valuing this company. (Hint: look at similar businesses.)
5. Exemplarily estimated the company’s major financial numbers (revenue and net income) based on the implied valuation of the most recent investment.
Assignment: The Face Book Deal Due. Evaluate the qualities of effective corporate governance. Use technology and information resources to research issues in advanced financial management. Write clearly and concisely about advanced financial management using proper writing mechanics.
The Facebook group announced that it has raised between $10 million to $12 million in first-round financing led by Accel Partners on April 15, 2005. As a part of the transaction, Jim Beyers, a Managing Partner at Accel Partners, joined the company's board. The post-money valuation of the company was $100 million. Facebook, Inc. announced that it has raised $27.5 million in its third round of funding led by new investor Greylock Partners on April 19, 2006.New investor MeriTech Capital Partners and existing investor Accel Partners invested in the transaction. The post money valuation of the company was $525 million.
Facebook, Inc. announced that it will raise $240 million in an equity round of funding from new investor Microsoft Corporation on October 24, 2007.
As a result of the transaction, Microsoft Corporation will now hold 1.60% stake in the company. The round was raised at a post-money valuation of $15,000 million.
Facebook, Inc. announced that it has raised $200 million in funding from Digital Sky Technologies Limited on May 26, 2009.
Digital Sky Technologies Limited invested in preferred stock and acquired 1.96% stake, valuing the company at $10 billion.
So what really happened here? What were the major events surrounding and shaping these investments? We want you to tell us the story of the business as it unfolded through these massive transactions
Write a 3-4 page paper in which you do the following:
• Write in a logical, well-organized conventional business style. Use Times New Roman font size 12 or similar, double-space, and leave ample white space per page.
• On the first page or in a header, include the title of the assignment, the student’s name, the professor’s name, the course title, and the date. Title and reference pages are not included in the assignment page length. No mechanical errors; text flows and concisely and clearly expresses the student’s position in an exemplary manner that rationally and logically develops the topics.
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.Funding round led by Accel Partners – April 15, 2005
This was an equity financing deal that according to Facebook raised between $10 million and $12 million, valuing the company at $100 million (Mangalindan, 2011). Additionally, Accel Partners acquired a seat on Facebook’s board affirming that it was, indeed an equity financing deal. This financing round was completed at a time when Facebook was still exploring monetization options, and membership was still limited to college students. It was the best option because unlike debt financing it would not burden the startup with interest payments (Basich, 2012).
At the time that this financing round was completed, Facebook was launching its expansion into universities abroad, and some of the cash raised could have been used for this. Before then, the company’s membership was primarily open to U.S university students....
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