Facebook Looks for New Digs, Ways to Spend Cash

By RJ Middleton
|  Tuesday, Jan 4, 2011  |  Updated 7:30 AM PDT
View Comments (
)
|
Email
|
Print
Facebook Looks for New Digs, Ways to Spend Cash

Getty Images

advertisement

Facebook, fresh off a $500 million influx from Goldman Sachs and DST, may split Palo Alto and head to Menlo Park -- and the former Sun Microsystems campus there, according to TechCrunch.

If they do, it'll be a leaseback, which saves the company a few hundred million dollars. TechCrunch's Erick Schonfeld explains "leaseback" as:

"... Facebook would sell the property to a REIT or other institutional investment group like a state pension fund. The investment group would then enter into a longterm lease with Facebook as the tenant of the campus. This arrangement would allow Facebook to move to a bigger headquarters while at the same time extracting a big lump of cash."

Now, a few hundred million bucks is no small amount, but Silicon Alley Insider has FB with $2 billion in its checking account for 2011.

That cash could be for the new digs, a stock buyback, server farms ... and buy some startups. 

Get the latest headlines sent to your inbox!
View Comments (
)
|
Email
|
Print
Leave Comments
Bay Area Proud
Bay Area Proud is NBC Bay... Read more
Follow Us
Sign up to receive news and updates that matter to you.
Send Us Your Story Tips
Check Out