DISQUS

Wil · 10 months ago

For anyone who's never been involved in this, the IRS valuation numbers are almost always a joke. You pay an accounting firm to figure out your value; they ask you what value you want; they come back with the number you gave them.

It's in the company's interest to keep this as low as possible, since it sets the exercise price for employee stock options. Higher valuation = less upside for new hires.
Old Man Dotes · 10 months ago

Facebook is worth exactly as much as the equity in the equipment it owns, less depreciation. The entire concept has absolutely zero real value (and from a productivity point of view, it has negative value). So the real worth of Facebook is probably less than one million dollars, unless they own the building they squat in.
smrter · 10 months ago

dude- old man dotes- you are a big idiot. less than one million? give me a break. did u go to college?
well-seasoned · 10 months ago

Old Man Dotes must be the (now former)ConnectU lawyer -- both are clueless about how to value a private company. Cannot believe the identical idiots didn't know the difference between common and preferred stock valuation and still think they could have pulled off the success that Zuckerberg did.