Tuesday, July 14, 2009

Facebook employees are offered $14.77 a share

SOCIAL NOTWORKING SITE employees at Facebook who want to make a quick buck off their company are being allowed to sell stock for $14.77 per share under an agreement with Digital Sky Technologies.

The Russian outfit wants to buy $100 million of Facebook common stock from current and former employees. It already announced a separate $200 million investment in Facebook's preferred shares in May, which means it thinks the value of the company is $10 billion.

From a Facebook staff member's perspective this means that they can get some cash out of the outfit at last, particularly before it goes to a public float and Wall Street starts wondering if it is really worth all that much.

Although Facebook is doing much better than Rupert Murdoch's MySpace, it is expected to make only $500 million in revenue this year.

More on Facebook Offering