2 Comments

Summary:

Facebook said Tuesday that CFO Gideon Yu is leaving the company. Yu had been at Facebook since 2007, where he helped it raise more than $500…

imageFacebook said Tuesday that CFO Gideon Yu is leaving the company. Yu had been at Facebook since 2007, where he helped it raise more than $500 million, including $240 million from Microsoft (NSDQ: MSFT). But the company is looking for more funding as it grapples with rising costs. Just last week, Business Week reported that the company was seeking another $100 million to help it fund the lease of new servers needed to support its growing membership.

The social networking site did not immediately provide a reason for his departure, although it said it was looking for a new CFO with public-company experience, which suggests an IPO may be in the offing sooner rather than later. “Gideon has played an important role in helping us achieve our financial success, building a strong finance team and establishing the core financial operations of our company. We are grateful to Gideon for his contributions to Facebook and what we are trying to accomplish,” said Facebook spokeswoman Brandee Barker in an e-mail.

In its announcement, Facebook emphasized that its finances were solid, stating that “despite the poor economic climate, we are pleased that our financial performance is strong and we are well positioned for the next stage of our growth.” The company also provided financial figures to some media outlets. A spokesman told The NYT that the company expected to increase revenue by 70 percent this year and that it would be cash-flow positive by 2010.

What’s next for Yu? Unclear, but Yu is an investor in several startups, including anti-piracy firm Vobile and photo ad network Pixazza, which last week announced it had raised $5.75 million from several investors, including Google.

You’re subscribed! If you like, you can update your settings

  1. Joe, it's good to see your posts from PI transition over to here. Keep it up!

  2. Jimmy Eubanks Wednesday, April 8, 2009

    Wow, I didn't realize how big facebook has become. Sorry to hear that Yu is leaving.

Comments have been disabled for this post