One of the burning questions in technology the past year, also played a major role in the dispute between social networks ConnectU and Facebook, according to documents obtained by CNET News.com.
Some interesting details about Facebook's valuation were revealed in partially redacted court records released Wednesday by James Ware, a Federal district court judge. The documents were a transcript of a June 23 hearing in the case that Ware closed to the public. The judge released the redacted transcripts after CNET Networks, parent company of News.com, filed an objection.
ConnectU, founded by twins, Cameron and Tyler Winklevoss and Divya Narendra, filed suit against Facebook founder Mark Zuckerberg in 2004 and accused him of stealing their business plan. The two sides reached a settlement, but ConnectU's side tried to pull out of the deal after alleging that Facebook fraudulently misrepresented the value of its stock. Ware disagreed and last week ordered that the settlement be enforced. That means Facebook is nearing the end of the ConnectU case.
But what the transcripts show was just how much Microsoft inadvertently influenced the proceedings.
Last fall, Microsoft paid $240 million to acquire a 1.6 percent share of Facebook. The day news of the deal broke, headlines screamed that Facebook was worth $15 billion based on Microsoft's purchase.
Analysts said all along that the money Microsoft paid was more a reflection of the company's need to strengthen ties to Facebook
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