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.