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Goldman, Russian firm investments raise Facebook value to $50 billion
The move appears to be a circumvention of a Securities and Exchange Commission requirement on companies with more than 499 investors to disclose their financial results to the public.
Source:
AHN
Reporter:
Windsor Genova
Location:
New York, NY, United States
Published:
January 3, 2011 12:27 p.m. EST
Topics:
Science And Technology, Company Information, Joint Venture, It/computer Sciences, Business, Economy, Business And Finance
Goldman Sachs Group Inc. and a Russian firm have bought into Facebook, raising the value of the social networking site to $50 billion, more than the worth of eBay, Time Warner and Yahoo.
Goldman reportedly invested $450 million while Digital Sky Technologies added $50 million.
Reports say that Goldman plans to raise $1.5 billion for Facebook from thousands of clients through an initial public offering.
The move appears to be a circumvention of a Securities and Exchange Commission requirement on companies with more than 499 investors to disclose their financial results to the public. A special purpose vehicle managed by the bank will count Goldman as a single investor.
The IPO is expected to happen in 2012.
Facebook has 500 million users and was the most visited site in the U.S. in 2010.
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