3 January 2011 9:44 GMT / By Paul Lamkin
Investment banking giant Goldman Sachs has invested $450 million (290 million) in the latest round of private share sales for Facebook, bringing the value of the company to around $50 billion (32 billion).
Russian investor Digital Sky Technologies also bought into the social network site, taking up 32 million worth of shares.
A New York Times report suggests that, as a result, Facebook is now worth more than eBay, Yahoo and Time Warner.
"The new money will give Facebook more firepower to steal away valuable employees, develop new products and possibly pursue acquisitions - all without being a publicly traded company," read the report.
"The investment may also allow earlier shareholders, including Facebook employees, to cash out at least some of their stakes."
Even though Facebook CEO Mark Zuckerberg has warned people not to hold their breath when it comes to Facebook being publicly listed, there are suggestions that the shares could be widely available in 2012.
"When you think back to the early days of Google, they were kind of ignored by Wall Street investors, until it was time to go public," said Chris Sacca, former Google employee and Twitter investor.
"This time, the Street is smartening up. They realise there are true growth businesses out here. Facebook has become a real business, and investors are coming out here and saying, We want a piece of it.""
Via: dealbook.nytimes.com
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Not sure this 'fad' is worth that kind of money!
Posted bypinktrickle,USAI'd say that social media has changed how advertising is done. For businesses such as The Gap, Safeway and non-profit organizations like Oxfam and Greenpeace. There are even small non-profit organizations that are taking advantage of the ever present use of internet media and peoples knowledge of how to "click, type, and post".
Posted byAmanda,USANice one. Thanks for sharing.
Posted byLos Angeles Web Development Company,USAI think it's worth the bucks. There is no sign of Facebook death in the coming years.
Posted bychari,PhilippinesThe question is whether they can make the most of the huge user base that Facebook has as well as the fact that there is much space for advertising. For example Google will do $28 billion in revenue from clicking on their ads.
Posted byLorne Marr ,http://lsminsurance.caHey, great post, really well written. You should post more about this. 70-620
Posted bypass4sure,USA
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