At least it’s not my Mom and Dad This Time
Initial take on the Facebook invesment: At least it’s two New York Hedge Funds and Balmer/Gates and not my parents or other retail investors like ‘The First Time Around’.
Second take: Has the company the company shot itself in the foot? I agree that this deal is only good for Zuckerberg but isn’t the point of the investment to ‘hire developers’ and go from 300 people to 700 people quickly?
Well if any of those new 400 people are in any way equity-motivated, wouldn’t they now re-think their prospects given they are entering in at a $15bn valuation (i.e. their option strike price is at a $15bn valuation).
There has been much talk about Microsoft not being able to get a return by entering in at such a high valuation but that is exactly the same scenario the 400 new developers entering the company over the next year will face as well.
[…] that I am setting the agenda for the wall street journal, an article was published following my first (well, second) take on the Facebook-Microsoft invesment: namely, it would be tougher to hire developers because of the […]