Facebook to Halve Its Credit Line

There's at least one benefit to a slumping stock price: Lower taxes.

Facebook Inc. FB -4.73% is planning to reduce a $3 billion line of credit that it received from its bankers prior to its May initial public offering to $1.5 billion, according to people with knowledge of the discussions. The social network also plans to expand the loan's term to three years from one year, these people added.

Facebook workers, several other others in tech, in an IPO funk

Facebook employees have lost an estimated average of $2 million each in stock or stock options, and employees of several other Silicon Valley tech companies are feeling similar pain.
The Wall Street Journal says Silicon Valley is in a “stock funk,” with employees at Facebook, Groupon, Zynga and Pandora losing $9 billion between them since they went public. (Facebook is the only company actually headquartered in Silicon Valley: Zynga is in San Francisco, Groupon is based in Chicago

Facebook Should Buy Zynga

Facebook's (NAS: FB) good for the money.
The Wall Street Journal reported late on Friday that the social-networking website operator wants to cut its credit line in half. Going from $3 billion to $1.5 billion to draw from -- and extending the terms of the potential borrowings from one year to three years -- makes sense.
Facebook closed out its latest quarter with $10.2 billion in cash and marketable securities on its balance sheet. Analysts see the company earning more than $1 billion this year and roughly $1.7 billion in the year ahead.