A knowledgeable source tells me that a Forbes report that two New York hedge funds have each invested $250 million in Facebook is untrue. The report may have surfaced because Facebook had been “talking to a number of PE and financial investors, such as hedge funds, prior to the detailed discussions with the strategics,” the source says. “The company may very well raise additional money, but there is no urgency. It feels very well capitalized.”
The source confirmed reports that Microsoft paid $240 million for a 1.6% stake in Facebook last week, which values the company at $15 billion. The investment means that Facebook’s venture backers have all made money — at least on paper. Accel’s 11% ownership stake is now worth $1.65 billion, The Founders Fund’s 5% is worth $750 million, the 1.7% stakes of Greylock Partners and Meritech Capital Partners are each worth $255 million and Accel GP Jim Breyer’s personal stake of 1% is worth $150 million.
Facebook founder and CEO Mark Zuckerberg’s owns somewhere between 20% and 30% of the company, making his stake worth between $3 billion and $4.5 billion.