Facebook takes $100 mn in debt as CTO departs
Facebook Inc said on Monday the company has taken out $100 million in debt financing and is looking for a replacement for its chief technology officer.
By Agencies |
SANFRANCISCO: Facebook Inc said on Monday the company has taken out $100 million indebt financing and is looking for a replacement for its chief technologyofficer.
Facebook spokeswomanBrandee Barker, confirming a recent Business Week story, said the fast-growingsocial network site based in Palo Alto, California, has taken out a $100 millionlease facility from TriplePoint Capital, a specialty finance company that backsventure-funded start-ups.
Facebook plans to use thefunds entirely for new computers and data centers, Barker said. The equipmentlease financing frees Facebook of the need to raise further venture funding thatwould dilute existing shareholders.
Gideon Yu, Facebook's chieffinancial officer, told the Wall Street Journal, which also reported thefunding, that debt financing offers the company greater stability. "Raising debtshould be a sign that we're entering a more mature phase," he is quoted assaying.
Since October,Facebook has received $375 million in financing, valuing the firm at $15billion, according to a source close to the company. Microsoft Corp invested $240 million, Hong Kong tycoon Li Ka-shing put in $120million and smaller investors contributed another $15 million.
Prior to this round, Facebookhad received $37.5 million in venture funding. Facebook was founded in 2004 as away for Web users to share personal details with selected friends and has becomea global craze with 70 million active users.
Separately, Silicon Valleyblog AllThingsD.com reported on Sunday that Facebook Chief Technology OfficerAdam D'Angelo had left the company.
Facebook confirmed thatD'Angelo was "taking time off" from the company and said it has begun a searchfor a vice president of engineering to replace 23-year-old D'Angelo.
D'Angelo, a high school friendof company founder and Chief Executive Mark Zuckerberg, could not be reached forcomment.
Business Week pointedout that the funding deal could be a boon to Rackable Systems Inc, a supplier of servers and storage for Web data centers.
Rackable counts Facebook as amajor customer, deriving 17 percent of its $68 million in revenue during thelatest quarter from Facebook, according to a company filing. Rackable shareswere up 34 cents or 2.7 percent at $12.76 in afternoon Nasdaq trading.
TriplePoint, which is based inthe heart of Silicon Valley venture capital world in Menlo Park, California, hasprovided more than $5 billion in financing to 1,200 mostly venture-backedcompanies.
Facebook spokeswomanBrandee Barker, confirming a recent Business Week story, said the fast-growingsocial network site based in Palo Alto, California, has taken out a $100 millionlease facility from TriplePoint Capital, a specialty finance company that backsventure-funded start-ups.
Facebook plans to use thefunds entirely for new computers and data centers, Barker said. The equipmentlease financing frees Facebook of the need to raise further venture funding thatwould dilute existing shareholders.
Gideon Yu, Facebook's chieffinancial officer, told the Wall Street Journal, which also reported thefunding, that debt financing offers the company greater stability. "Raising debtshould be a sign that we're entering a more mature phase," he is quoted assaying.
Since October,Facebook has received $375 million in financing, valuing the firm at $15billion, according to a source close to the company. Microsoft Corp
Prior to this round, Facebookhad received $37.5 million in venture funding. Facebook was founded in 2004 as away for Web users to share personal details with selected friends and has becomea global craze with 70 million active users.
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Separately, Silicon Valleyblog AllThingsD.com reported on Sunday that Facebook Chief Technology OfficerAdam D'Angelo had left the company.
Facebook confirmed thatD'Angelo was "taking time off" from the company and said it has begun a searchfor a vice president of engineering to replace 23-year-old D'Angelo.
D'Angelo, a high school friendof company founder and Chief Executive Mark Zuckerberg, could not be reached forcomment.
Business Week pointedout that the funding deal could be a boon to Rackable Systems Inc
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Rackable counts Facebook as amajor customer, deriving 17 percent of its $68 million in revenue during thelatest quarter from Facebook, according to a company filing. Rackable shareswere up 34 cents or 2.7 percent at $12.76 in afternoon Nasdaq trading.
TriplePoint, which is based inthe heart of Silicon Valley venture capital world in Menlo Park, California, hasprovided more than $5 billion in financing to 1,200 mostly venture-backedcompanies.
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