Goldman Sachs has invested $450 million in Facebook in a deal that values the US social network site at $50 billion (Rs 2.2 lakh crore).
Goldman Sachs has invested $450 million in Facebook in a deal that values the US social network site at $50 billion (Rs 2.2 lakh crore).
The investment bank is to invest its own money in the company Mark Zuckerberg set up from his university digs. It is understood it may allow private investors to take a stake through a special purpose vehicle.
Russian group, Digital Sky Technologies has also invested $50 million.
Despite attempts by Facebook's chief executive Zuckerberg to scotch rumours of a flotation, Goldman Sachs is now widely accepted to be the frontrunner to lead a listing should it occur.
While Facebook may not be keen to undertake a full listing it could find its hand being forced.
A secondary market in the company's shares has already been built up. In November $40 million of shares were traded on private exchange, SecondMarket.
The US regulator Securities and Exchange Commission has already started an inquiry into whether the shadow market in the shares of Facebook and other private technology companies such as Twitter and LinkedIn.u00a0
Facebook does not publish accounts, however experts estimate the company could be making a profit and have revenue of as much as $2 billion per year.
The $50 billion valuation puts Zuckerberg's personal fortune at around $14 billion.
ADVERTISEMENT
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
