Why Facebook’s Fund Raising Reminds Me of NBC’s The Office

Does anyone else see the similarity between Facebook’s attempts to raise additional funds and last week’s episode of The Office?

A quick re-cap. Michael Scott’s paper company is offered a buyout by his old employer. On their way to the negotiation table, everyone is eager to ensure that Michael Scott doesn’t reveal that his company is actually flat broke, and desperate for the money.


(click to watch the clip at Hulu.com)

Enter Facebook Chief Operating Officer Sheryl Sandberg:

“We absolutely do not need to take money,” she said. “We might take money, but it doesn’t mean we need to.”

OK, while Facebook is not exactly flat broke, it is playing a game of brinkmanship with venture capital firms–which value Facebook in the $2-3 billion range instead of the $5-6 billion Sandberg wants.

If you were a betting (wo)man where would you put your money? Facebook getting the valuation it wants, or VCs getting something lower?

  • http://www.jozsoft.com/blog/ Joe Hall

    I say that any web company that is valued at $2-3 billion by any reasonable industry expert is in a position to do just about anything they want with out bluffing. I mean the number of firms that could actually afford that price are so small that i am willing to bet that everyone has a very good idea of whats probably on the books.

    Joe Hall’s last blog post..IM Spring Break is Going to Make You Pee Your Pants!

  • http://www.frankthinking.com Frank Reed

    Hey they suckered Microsoft into a $15 billion valuation at one point so maybe they feel that there is one born every minute. In this environment, VC’s will put the squeeze on anyone more than in the past because they are in the driver’s seat. Make hay while the sun is shining as a VC and get into the game at a lower price point because the climate is on their side especially considering some of the bumbling moves that Facebook has pulled in the very recent past.

    Frank Reed’s last blog post..Stepping Back for a Moment

  • http://www.integratedliving.us David LeVine

    The biggest danger to the investors in Facebook is the rapidly changing state of today’s game. The moment the next new thing gains enough momentum…Facebook’s value could quickly start sliding off that cliff over there.

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