Splicetoday

Digital
Feb 16, 2009, 08:13AM

The beast hath slowed!

Facebook is going through it's own recession. Pokes and superpokes predicted to be rationed according to total number of friends.*

* Not really:

Last summer, the company settled a dispute with a rival social network, ConnectU, that dates back to the founding of Facebook in CEO Mark Zuckerberg's Harvard dorm room. ConnectU's lawyers — whom the site's founders have since fired — revealed that the case was settled for $65 million in a newsletter bragging about their firm's accomplishments. And now the Associated Press has obtained a court filing which shows the exact breakdown of cash and stock Facebook used to settle the case: $20 million in cash, and 1,253,326 shares of Facebook stock.

Discussion
  • The financial health of Facebook doesn't particularly concern me, since I'm not a user, but this is an apt example of the wretched state of the economy. When a huge website that until recently most people assumed was awash in cash, has to find more financing--and where will that come from, with credit frozen?--it's pretty frightening.

    Responses to this comment

Register or Login to leave a comment