The Cost Of FriendFeed: Roughly $50 Million In Cash And Stock

August 11, 2009

Everyone is obviously talking about theFacebook/FriendFeed deal, but everyone wants to know one key detail: How much did Facebook pay? Now we know: Facebook paid nearly $50 million when you add the $15 million it paid in cash with roughly $32.5 million (based on current valuations) in stock, according to the Wall Street Journal.

The stock is the key part of this deal. Its value is derived from the $6.5 billion common valuation after a recent purchase of employee stock by the Russian investment group DST. But what’s really interesting about the stock is that these are options that vest over a set period of time (”several years,” says WSJ), just as employees in the company get. Compared to the Parakey deal in July 2007, in which the company got only cash and no stock, this seems like a pretty nice deal (assuming that Facebook’s stock eventually pans out, of course).

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