Friday, April 17, 2009

Facebook Rejects Funding

In the current crisis, a lot of start up are struggling and dying because they don't have access to funds. Nevertheless, Facebook have recently rejected a funding offer worth $4 billion. The Palo Alto firm considers it doesn't need at the moment funding.

This news might seem a little bit strange, but actually it does make sense. Facebook is counting around 200 to 250 million users at the moment and is still counting as the platform is constantly growing fast.

"Facebook made under $300 million last year, was a little shy of breaking even, and at first expected to make towards $400 million in revenue this year. But the company said in late March — incidentally at the time that chief financial officer Gideon Yu left the company — that it was beating projections by 70 percent. I’ve confirmed that this run rate has the company possibly breaking half a billion in revenue by the end of the year."

Facebook seems to adapt to this current economic situation, and is eager to develop its revenues more than searching for new funds, as Facebook'operational staff has probably reached its normal size.