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  Facebook value drops $11.25bn | The Register 

  http://www.theregister.co.uk/2008/07/08/facebook_valuation

  The founders of ConnectU have accused Facebook CEO Mark Zuckerberg of stealing their idea, and in February, the two companies reached a secret agreement involving cash and stock. But ConnectU later backed ... out of the deal, claiming it was unenforceable, and Facebook turned back to the courts. According to case documents, ConnectU argued the deal was bogus in part because Facebook lied about its valuation when the Microsoft pact went through. "The term sheet and settlement agreement is also unenforceable because it was procured by Facebook's fraud," the court papers say. "Indeed, based on a formal valuation resolution approved by Facebook's board of directors but concealed from ConnectU, the stock portion of the purported agreement is worth only one-quarter of its apparent value based on Facebook's public press releases." In other words, ConnectU somehow nabbed Facebook's internal valuation of the company's common stock, and this figure was $3.75bn, not $15bn. But as The New York Times p   [More...] [Less...]

  First added: 8 July 2008, by: Leong Soong  [Report as spam]

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  Tags:  stock, facebook, shares, social networking