Facebook devaluation

We warned them at least a year ago that going for an $15bn valuation was silly, but they didn't listen

Now, cometh the downround and all it entails, as TechCrunch explains:

The cost of taking money at such a low valuation is higher than it appears. In addition to the direct dilution to stockholders from the new money, old investors at the $15 billion valuation may need to be made whole. Venture rounds traditionally include anti-dilution provisions that give investors more stock if the company raises new money at a lower valuation. Those anti-dilution provisions are heavily negotiated and can end up anywhere from full protection (which is very rare) to no protection at all (which is also very rare). It’s likely that there will be some form of additional dilution, possibly a lot of it, from the $375 million Facebook has raised at that valuation.

Never mind all the high power staff who've been tempted by options up the wazoo.... new paddles will be required. I think they'll be taking money at c $1.5bn valuation (see calcs here). Bets?

(Just to cheer them up some more - news that Facebook is losing its glow....but hey, we predicted that yonks ago too