Accel Dumping Stock in Facebook

Discussion in 'FaceBook' started by schrute, Nov 20, 2010.

  1. schrute

    schrute Regular Member

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    Accel Partners is selling off a huge portion of its Facebook stock, Mike Arrington at TechCrunch reports.

    The VC firm owned 10% of Facebook, but has sold one-fifth of its stake for a price somewhere in the range of $500 million, and is no longer the largest venture holder in the company. Buyers reportedly include TCV, which may be in for as much as $200 million, and Andreessen Horowitz at around $80 million.

    The big question is valuation. Are the buyers accepting that Facebook is worth $35 to $40 billion, or are they buying at a much lower price? At the Web 2.0 Summit conference the other day, VCs Fred Wilson and John Doerr had a disagreement on the secondary market, where investors buy limited stock, with Wilson suggesting that valuations in that market are not realistic or meaningful.

    Regardless, it's probably higher than the $15 billion valuation that Microsoft used when making its investment in 2007. That investment looks like genius now.



    Read more: http://www.sfgate.com/cgi-bin/artic...g-stock-in-facebook-2010-11.DTL#ixzz15pOlklnm