Faecbook, meanwhile, can’t be a garden of euphoria either.

Facebook sold preferred shares at $15B, while its employees own common shares at a $4B valuation.  As SAI points out:

As we all know, Microsoft, Li Ka-shing, and some German investors paid a $15 billion valuation for some preferred stock last fall.  Importantly, this preferred stock takes precedence over the common: Microsoft will get its $250 million back before common shareholders get a cent (common shareholders will get to split up what’s left).  So it is inaccurate to say that Facebook’s valuation has fallen from $15 billion to $4 billion.

Admittedly, to really discern what this all means, you’d need to get your hands on the company minutes and most importantly, the unanimous shareholders’ agreement, however, one thing is certain:

It cannot be fun times at either headquarters.  But what is the best remedy to cheer up employees saddened by paper loss?  The potential of a pink slip… so I am hoping that everyone cheers up real soon.