As a Facebook board member and one of the social networking company’s first investors, Jim Breyer of Accel Partners was all over the news after Microsoft paid $240 million for a 1.6% stake in the company in late October.
The resulting $15 billion valuation means Accel’s 11% stake in Facebook is worth $1.65 billion and Breyer’s personal stake of 1% is worth $150 million. The company’s other backers also made out: The Founders Fund owns 5% worth $750 million, while Greylock Partners and Meritech Capital Partners each owns 1.7% valued at $255 million.
Editor Lawrence Aragon asked Breyer (and his Facebook profile) six quick questions:
How do you respond to those who say the $15 billion valuation is irrational?
I don’t know if it’s rational or irrational, but what I do know is that there were a number of strategic investors interested at these levels. … When we [Accel Partners and Breyer personally] invested $12.7 million at $78 million pre-money, the valuation was roundly criticized.
Q. Any chance Facebook may acquire other VC-backed companies with its new capital?
Absolutely. We’re looking for companies that will help us continue to evolve our platform—companies that build potentially important embedded applications that would be additive to Facebook’s applications strategy. Not surprisingly, we’ll also be looking at excellent entrepreneurs who are building international and global applications in other geographies.
Q. Does Facebook have a list of acquisition targets?
A. There is the beginning of a list. I’m on the board of the fbFund with Peter Thiel, Mark [Zuckerberg, Facebook’s CEO] and Chamath [Palihapitiya, Facebook’s VP of product marketing and operations], and we’re seeing literally thousands of applications. We are actively evaluating the pipeline of third-party applications. At the same time, from the Facebook corporate perspective, we’re putting together target categories of highly interesting companies that we would hope to partner with or potentially buy.
Just for fun
Q. How many Facebook friends do you have?
Q. How many photos have you posted where you appear with celebrities?
Six: I’ve posted shots of me with Beyonce, Sara Evans, Shakira, Russell Simmons, Jessica Simpson and Will Smith.*
Q. How many Facebook ‘gifts’ have you received?
26, including a disco ball, a monkey, a pair of handcuffs, a tea kettle and a Valentine’s Day cookie.*
* Answers culled from Breyer’s Facebook profile.