Website now worth more than eBay, Yahoo and Time Warner, NYT says
Social networking behemoth Facebook has raised $500 million from Goldman Sachs and a Russian investment firm in a deal that values the company at $50 billion, The New York Times reported.
Goldman invested $450 million and Digital Sky Technologies invested $50 million, the newspaper reported Sunday in its online edition, citing people involved in the transaction that it did not name. Goldman has the right to sell part of its stake, up to $75 million, to the Russian firm.
The report said representatives for Facebook, Goldman and Digital Sky Technologies declined to comment.
The deal makes Facebook now worth more than companies including eBay, Yahoo and Time Warner, the newspaper said.
The U.S. Securities and Exchange Commission is reportedly looking into the booming trade in privately held shares of popular social networking sites. A big reason the SEC may be curious about the trading of these popular private startups' shares is because once a company hits 500 shareholders, it must disclose certain financial information to the public, even if it hasn't filed for an initial public offering.
GO HERE to read more.
1 comment:
Watch out for the sucker play, where a company gets BIG write-ups, phat publicity, and huge props. Then investors FLOCK to the "next big thing". A little later, guess what? The investors lose evrything and the CEO's and brokers get RICH.
Post a Comment