Eric (on a roll) Eldon is reporting that Facebook is going to announce that it will let employees “cash out” at an internal valuation of $4b. This amount is well under the valuation that Microsoft placed on the company.
Facebook has an internal valuation of $4 billion, as Venturebeat previously reported. It will begin letting current employees sell 20 percent of their fully vested stock options at that valuation, starting this fall.
Ok I think that Facebook’s engineering of an liquidity event for their employees is a good thing. I’ve said on this blog that Microsoft’s run at buying Facebook was their IPO.
My sources inside Facebook and at Microsoft both admitted that employees at Facebook were getting restless given that an IPO is not in sight. The opportunity for employees to sell some of their vested shares in this deal is great for employees and good for the company.