Decision Time For Facebook: Term Sheets Received At $2 Billion Valuation

Facebook has been pitching for a new round of funding these last few months to bridge itself to an IPO sometime in the future. We've known that since October, when (#-Link-Snipped-#) CFO #-Link-Snipped-#. In December CEO #-Link-Snipped-# said the company was open to #-Link-Snipped-# but only at the previous #-Link-Snipped-# valuation set by Microsoft. But we've heard more recently that the company has been pitching hard for new cash at a much reduced valuation, hoping for at least $4 billion. And some investors are biting, but not at that price. A source with knowledge of the possible transaction tells us that #-Link-Snipped-# (who are also investors in Hulu) and #-Link-Snipped-# have submitted term sheets at "around $2 billion" valuations. Will Facebook take the expensive new money from Providence or General Atlantic? #-Link-Snipped-#. They're burning as much as $20 million a month in cash and are dealing with ridiculous growth. They likely have less than two years runway left, and possibly significantly less if they continue to add new users by the tens of millions that are currently flocking there every month.

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