The Silicon Alley Insider has a very interesting take on the $1 Billion the VC firm Accel recently raised:
Did Accel Just Raise Money For A Facebook Bailout? Facebook needs cash and soon as revenues continue to miss expectations. Facebook CEO Mark Zuckerberg recently admitted CFO Gideon Yu continues to try to raise money at the valuation Microsoft set last fall when it bought 1.6% of Facebook for 240 million.
Since Facebook had trouble finding a revenue model in the kredit-laden, champagne days of ’06-’07 it could find the next year or two pretty tricky. Surely, it’s only a matter of time until they are acquired by Microsoft? Hopefully for MS, it’ll be at a more reasonable valuation than when they bought the 1.6%.
