Facebook to Raise Series E Funding with Apple as Investor
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Re: Facebook to Raise Series E Funding with Apple as Investor
#2Probably rather important to include the [RUMOR] part of the headline...
Re: Facebook to Raise Series E Funding with Apple as Investor
#3the social network war fractions aligning :p
Re: Facebook to Raise Series E Funding with Apple as Investor
#4From a comment I made a few days ago on the "Is Apple buying Facebook" article:
"a buyout is probably unlikely (given how many offers/deals Zuck has either rejected or pulled out of in the last minute over the past 6 years). That said, he may be looking to Apple as a default liquidity provider which would save Facebook from needing to go public. If existing VC firms seeking liquidity and employees looking to cash out all sold to Apple that would probably decrease their outstanding # of shareholders and keep them clear of SEC regs for at least a little while longer. Also seems like a solid long term relationship given both companies' strong focus on design, usability, and the consumer."
The move obviously makes strategic sense but I don't see why Zuck wouldn't want to just use Apple as a pre-IPO (instead of issuing new shares) and let Fbook shareholders sell existing stock to Apple. Like I said earlier, this could help delay the need for an IPO for another few years (possibly longer).
Re: Facebook to Raise Series E Funding with Apple as Investor
#5From a comment I made a few days ago on the "Is Apple buying Facebook" article: "a buyout is probably unlikely (given how many offers/deals Zuck has either rejected or pulled out of in the last minute over the past 6 years). That said, he may be looking to Apple as a default liquidity provider which would save Facebook from needing to go public. If existing VC firms seeking liquidity and employees looking to cash out…
Zuck does seems very determined to avoid having an IPO anytime soon.
Re: Facebook to Raise Series E Funding with Apple as Investor
#6Hmm. What if Apple streamed music through Facebook (with integrated social features ie Ping) as a premium service and split the revenue with Facebook. Facebook's install base is so large, cost-leadership wouldn't be necessary to beat Spotify etc.
Also, I could see some teamwork between their respective game platforms/businesses. Buy an App Store game, you get to share it with two of your Facebook friends (send them a download token), which creates many more word of mouth sales, etc. Just seems Apple are the people poised to actually capitalize on a massive social network user base.
Re: Facebook to Raise Series E Funding with Apple as Investor
#7An IPO for Facebook would mean losing all of their top engineers who are hanging around until they can cash out. Everyone will leave for the next hot startup and to work on their own projects. Zuck is smart for dragging the process out.
Re: Facebook to Raise Series E Funding with Apple as Investor
#8Regarding Microsoft as an investor and it's conflict with Apple, keep in mind that Microsoft has already taken a direct investment in Apple buying ~3% of the company about 10-12 years ago for $150 million. The day they bought it it closed at $4.97 compared to $307 today.
Re: Facebook to Raise Series E Funding with Apple as Investor
#9Regarding Microsoft as an investor and it's conflict with Apple, keep in mind that Microsoft has already taken a direct investment in Apple buying ~3% of the company about 10-12 years ago for $150 million. The day they bought it it closed at $4.97 compared to $307 today.
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Re: Facebook to Raise Series E Funding with Apple as Investor
#10An IPO for Facebook would mean losing all of their top engineers who are hanging around until they can cash out. Everyone will leave for the next hot startup and to work on their own projects. Zuck is smart for dragging the process out.
AFAIK, everyone is free to quit and sell their shares on sharespost.com.