Facebook valuation hung drawn and quartered - Microsoft's valuation mocked

By Dave Murray @ Monday, July 07, 2008 12:00 PM

Section - Business/Financials

The New York Times is laying into Microsoft for valuing Facebook at $15 billion last year when bought shares in the company.

A recent court case has shown that while Redmond was telling everyone that the company was worth $15 billion, Facebook considered itself only worth $3.75 billion.

The real figure came to light when Connectu claimed that Mark Zuckerberg, a former employee and Facebook's founder, got his idea from Connectu. Since Connectu was going to get money based on the valuation of the company, this figure was quite important.

The Times said that Microsoft probably upped the value of Facebook to prevent Google from buying it. However, it does admit that the value of the shares that Redmond bought were probably worth more than the ordinary shares.

However the question is still annsweed as to how much the shares are worth, and the level of investment that Redmond can expect from the company remains unknown. X