$500 Million More for Facebook

TechCrunch is reporting (via Forbes) that two hedge funds have bought into Facebook, in addition to yesterday’s announcement of a deal with Microsoft.  The two funds each put in $250 million, for a total of $740 million in cash for Facebook, including the deal with Microsoft.  That’s enough money for them to stay private for quite a while – I wouldn’t expect an IPO anytime in the near future.

Like it or not, Facebook matters.  At least, that’s what I’m getting from all of this activity.  Perhaps it’s being overvalued, but I doubt it’s by much.  I think Microsoft (and the hedge funds) are getting into something that has huge potential.

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