Report: 'Hedgetards' didn't pump cash into Facebook

Blogger says he has formally debunked the claim that Facebook had raised $500 million from two hedge funds.

Remember, right after Microsoft's $240 million stake in Facebook was announced, when a Forbes blogger reported that two New York hedge funds were also contributing $500 million? And how funny was it that Fake Steve Jobs (also known as Dan Lyons, also on the Forbes payroll) proceeded to post the same news, except that he infused it with hilarious FSJ neologisms like "hedgetard?"

At the time, most people seemed to take it as the truth. After all, the $15 billion valuation for Facebook turned out to be true, so Facebook observers were likely in a state where they were willing to believe just about anything.

But after a few days of "hey, wait, maybe that didn't happen," Inside Facebook blogger Justin Smith said he has learned for sure that Facebook has not closed a $500 million investment from the two unnamed hedge funds. "Facebook's current financing round is still open. The company is seeking to raise $500 million in this round (or $260 million in addition to Microsoft's $240), which will be their last," Smith wrote. "While there are a lot of offers on the table, possibly including some hedge funds, no deal is done yet."

About the author

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos.

 

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