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The acquisition was in stock and cash. So the VCs that put up the $50M may have just gotten $100M in pre-IPO Facebook stock, which may well dramatically increa
by nirvana 15y ago
The acquisition was in stock and cash. So the VCs that put up the $50M may have just gotten $100M in pre-IPO Facebook stock, which may well dramatically increase their return post IPO.
- marcamillion 15y agoAhhh....good point. That does change the formula a bit, but even still...what's the likely 1 year return on pre-IPO FB stock? 3X if so much? I doubt it. Anyway, it's better than 2X, so I guess they can't be pissed.
- waterlesscloud 15y agoThis has to be mostly stock...how much cash does FB even have? Enough to casually hand out hundreds of millions?
- shingen 15y agoFacebook has $4 billion in cash on hand (pre IPO).