How Facebook Saved Bono’s Arse

18 May 2012 | 2:45 pm | Dan Condon

But is the Irish rocker really earning as much as everyone says?

More U2 More U2

Investment company Elevation Partners, perhaps most famous for their association with U2's Bono, were labeled as the dumbest investor in America after a series of dud decisions as to where they spent their money, namely injecting a great amount of cash into the Palm Inc. and Forbes Media brands. But they are sitting pretty after the USD$38 initial public offering (IPO) of Facebook today, after the company quietly opted to accept the offer of a 2.3 percent stake in the company for USD$90 million back in 2009.

After the public offering of the company, Elevation Partners' share of the social network's spoils will be in the vicinity of USD$1.5 billion, money which will make up for the poor decisions that saw the company lose out in the past.

It is important to note that Bono does not own Elevation Partners and, as such, does not own 2.3 percent of Facebook. He is the managing director and co-founder of the company, but not the sole stakeholder. He does, of course, own a stake in the company (as does U2 guitarist The Edge) and will certainly stand to profit handsomely from the sale.

Rumours are circulating that his rockstar status might allure Facebook to nominate him as the stakeholder to ring the bell at the New York Stock Exchange upon its opening on Friday morning New York time, though the safest money still rests with founder Mark Zuckerberg.

Don't miss a beat with our FREE daily newsletter

There are a number of very interesting stories coming out of the recent Facebook IPO, graffiti artist David Choe who, instead of accepting cash for painting Facebook's Silicone Valley offices back in 2005, took shares that were offered to him, which entitled him to 0.2 percent of the company. At the time he called the shares “ridiculous and pointless”, they're now worth USD$170 million.