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.
There was an increased use of emojis in 2016 and Instagram was no exception. How do they affect engagement though?
As it prepares for a 2017 IPO that could be the largest in the social media space since Facebook went public in 2012, all eyes are on Snapchat.
What would we do without social media?
Facebook isn't just the world's largest social network. In the past two years, it has also become one of the world's most popular online destinations for consuming video content.