Monday, January 3, 2011

Facebook raises new funding at $50B valuation


mark zuckerberg
Facebook is now worth $50 billion,according to a report in The New York Times that says the company has raised $500 million in new funding from Goldman Sachs and Russian firm Digital Sky Technologies.
Goldman invested $450 million, while DST (which has already invested about $500 million into Facebook) provided the remaining $50 million. Goldman also plans to create a “special purpose vehicle” to pool its clients and invest another $1.5 billion in Facebook without triggering the Securities and Exchange Commission’s 500-shareholder threshold, The Times says. (Companies that break the threshold are required to disclose more information publicly.)
Facebook’s valuation has been climbing steadily on the secondary markets where shares are sold. (The SEC is now investigating those markets.) Early Facebook investor Accel Partners recently sold off some of its shares at a $34 billion valuation.
Facebook is expected to have its initial public offering as soon as 2012, although the company hasn’t said anything specific on the matter. It reportedly brought in $2 billion in revenue in 2010, and chief Mark Zuckerberg has said that the company is barely profitable, because it’s not focused on profits yet.
Last month, the second-hottest social networking company, Twitter, raised $200 million at a $3.7 billion valuation.
by : Anthony Ha
@VentureBeat

No comments:

Post a Comment