The LA Times Interview With Paul Buchheit

 

Facebook's Paul Buchheit talks about Facebook, Google and his new gig

November 12, 2010 |  5:53 pm

Earlier today we reported that Paul Buchheit, who created Gmail and founded FriendFeed,was leaving Facebook to join Y Combinator. We caught up with Buchheit on his last day at Facebook.

 

It’s interesting that Paul is leaving Facebook before an IPO (Initial Public Offering) happens. There is more to life than money when you have enough to walk away from what might be a huge payday.

On a somewhat related note, the EconTalk podcast did an interview with Paul not long after Facebook acquired his startup Friendfeed. You can find the episode on EconTalk here.

Business Week: Facebook's Fire Sale

Top execs at the social network are selling shares—at prices far lower than the site's once-vaunted $15 billion valuation

Insiders at Facebook are selling stock in the social networking company, and the prices they're getting for their shares suggest the sky-high valuation backers once placed on the company may prove unrealistic.

My Take:
It's interesting that folks are cashing in now instead of waiting for the eventual IPO or buyout. Perhaps even a $1 billion valuation is high for the amount of revenue and profits that Facebook is making.

Lock in Gains
Some people would rather take smaller gains than risk major losses if the stock flounders upon going public or being acquired.

Indicator
It may be worthwhile to keep an eye on this story to see if this movement is indicating there are problems just over the horizon.

Time will tell.

What do you think?