Facebook Gets on the Books at $2b

Marketing Vox reports an investment in Facebook By Interpublic (via Inside Facebook).

Interpublic Group
is in final negotiations with social networking site Facebook for a 0.5
percent stake in the site in return for spending up to $10 million for
the agency’s clients on Facebook, reports MediaWeek.

Obviously, the implication is a $2b valuation, validating the earlier rumors that Facebook had pushed for such a number when they turned down a $750m Viacom offer.

However, looking at the size of the deal, I think the equity part of the deal is a bit of a farce.  IPG is not a holding company of marketing services providers.  I don’t think they look at this as an equity investment, but rather an experimental media buy, or a biz dev deal.  However, by attaching an equity stake in the deal, at their own terms, Facebook puts itself in the books at a $2b valuation.

To me it looks like a prophecy they hope that will be self-fulfilling.

One thought on “Facebook Gets on the Books at $2b

  1. MySpace $15b in Three Years??

    We have been hearing lots of number being thrown around lately. First, the rumors of a $750m Viacom offer, and then a $1b figure from Yahoo!, both for Facebook. Now, I get a headline from Reuters that an analyst at

    Like

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