Monday, January 3, 2011

Goldman Makes $500mil Investment In Facebook. Zuckerberg Even Richer

Tonight all of us twitter/blogging/new media Facebook using crazies were startled by the 500mil$ investment in privately held Facebook by Goldman Sachs, the "gods" of Wall street. Anyway Facebook is going to be be one hell of an IPO if they ever can get this thing floated, my guess is they float this and IPO her this summer as the stock market is racing to new highs just as the index's peak. Zuckerberg is now worth over 15$ dollars... on paper.

(Dealbook) "Facebook, the popular social networking site, has raised $500 million from Goldman Sachs and a Russian investor in a deal that values the company at $50 billion, according to people involved in the transaction. The deal makes Facebook now worth more than companies like eBayYahoo andTime Warner.
The stake by Goldman Sachs, considered one
of Wall Street’s savviest investors, signals the increasing might of Facebook, which has already been bearing down on giants like Google. 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. The investment may also allow earlier shareholders, including Facebook employees, to cash out at least some of their stakes."
The new investment comes as the Securities and Exchange Commission has begun an inquiry into the increasingly hot private market for shares in Internet companies, including Facebook, Twitter, the gaming site Zynga and LinkedIn, an online professional networking site. Some experts suggest the inquiry is focused on whether certain companies are improperly using the private market to get around public disclosure requirements.