Facebook Rejects Funding At $4B Valuation
Facebook CEO Mark Zuckerberg and his board met yesterday to discuss and eventually reject two funding offers for the company -- one at a $4 billion and one at $2 billion, according to reports from VentureBeat and TechCrunch.
A source close to Facebook tells us the company values itself closer to $5 billion.
Ever since a report surfaced at BusinessWeek that Facebook intended to engage in vendor-financing for new equipment, there's been speculation that the company is suddenly cash-strapped.
In addition, a source close to Facebook recently offered us these details on the company's finances:
-Facebook's revenue is growing 70% from where it was last year. (We believe last year's revenue was about $365 million, so assuming some slowdown through the year, this would put 2009 revenue at $500 million-ish)
-The company has generated positive EBITDA (earnings before interest, taxes, depreciation, and amortization) since August of 2007.
-The company expects to start generating cash from operations ("Operationally cash-flow positive including cap-ex") at some point during 2010
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