Interpublic Group has agreed to sell about half its stake in Facebook for $133 million in net cash.
The agency holding company was recently approached about a private sale of its investment in the social networking giant, an investment that dates to a 2006 strategic partnership between the companies. That deal gave IPG a position in Facebook in exchange for input on its marketing platform and client involvement. At the time Facebook was still primarily a platform for college students.
IPG CEO Michael Roth said in a statement, “[Facebook’s] ubiquity has meant the strategic value of our initial investment has moderated, while the financial value of that stake appreciated significantly. As a result, when an attractive opportunity to divest a portion of our position recently presented itself, we decided that it made sense to do so.
At the time of its investment, Interpublic’s shares amounted to about .4 percent of Facebook. Assuming it still holds the same percentage, the sale of half its shares (.2 percent) values Facebook at $66.5 billion – at least according to IPG and the undisclosed buyer.
On closing the deal, IPG said its pre-tax gain will be $132 million.
With more than a billion users, and billions of daily video views, gaining users’s attention on YouTube may seem a daunting prospect. ... read more
It’s been a great year for Snapchat and it’s no surprise that Facebook is eyeing up many of its most successful features. ... read more