By Kevin McCauley
Interpublic owns an investment stake in social networking behemoth Facebook that is worth between $200M and $300M, according to a report in the Financial Times.
IPG divulged its holding in a footnote in its annual report. “From time to time, we make investments in privately held companies that we believe may be of interest to the advertising and marketing sector,” IPG disclosed.
"Certain of these investments, the most significant of which is Facebook, have significantly appreciated compared to their cost, but there can be no assurance as to the terms on which we would be able to dispose of any such investment," the company said.
The FT notes that the Facebook stake is “welcome for the group, which is recovering from a tough few years during the recession. That investment is now big enough to require IPG to file it with the Securities and Exchange Commission.
IPG reportedly paid less than $5M in `06 for its less than one-half percent stake in Facebook. The social networker is valued at $15B.
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