RSSInterpublic Group taking a stake in Facebook
June 19th, 2006
Marketing conglomerate Interpublic Group is close to closing a US $10 million investment in Facebook that values the company at approximately US $2 billion.
(Update: the $10M commitment is officially ad spend and not explicitly in exchange for shares)
According to MarketingVox,
The deal would give IPG not only display ad opportunities but also access to Facebook user data… The IPG deal could also help Facebook develop an ad model beyond its current heavy reliance on third-party ad networks.
Couple thoughts:
1. This is a great valuation for Facebook. Makes David Sze and Mark Lockareff look good.
2. This reflects a vote of confidence from Madison Avenue in the strategic importance of social networks (though some also see it as an act of desperation by Facebook).
3. IPG companies will develop custom products to stretch online brand experiences into new territory.
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June 20th, 2006 at 7:31 am
Facebook Gets on the Books at $2b…
Marketing Vox reports an investment in Facebook By Interpublic (via Inside Facebook). Interpublic Group is in final negotiations with social networking site Facebook for a 0.5 percent stake in the site in return for spending up to $10 million for…
June 20th, 2006 at 9:28 am
This deal stinks to high heaven. FBK is selling their user lists to an ad agency. As a user, how pissed am I?
Secondly, why does Facebook need the $5MM? Why not just give the agency a better cut of the revenues brought in? Sounds like FBK having some cash flow problems. Not surprising.
June 21st, 2006 at 11:19 pm
You might want to check your facts - Facebook isn’t getting a $2B valuation…they are giving up .5% of the company to get this deal done. The $10MM isn’t the investment it’s the commercial deal - the article does not state how much it is costing IPG for the .5% stake, my guess is that is is at the same valuation as Greylock…
June 23rd, 2006 at 11:53 am
joe,
i believe it says the .5% stake is costing them “around” $5 million. If they in fact did pay $5 million then that puts the valuation at $1 billion according to my calculator.