Putting a price on friending

When Giovanna was offered a job at Facebook several months ago, we attempted to figure out what her compensation looked like relative to her other job offerings, just out of curiosity. Since unvested stocks were in the offering, I started looking at Facebook’s proposed IPO pricing. I discovered they had pegged the offering at an estimated market capitalization of around $80B (I avoid to use the word “value” here as I do the word “friends” in reference to said company) and was surprised that a company could reach that kind of valuation so quickly. This meant number crunching time.
Continue reading “Putting a price on friending”