Facebook Starts the Year With $50 Billion Valuation by Goldman Sachs

Must Read

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Facebook’s Chasm Of Distrust: An Ever-Deepening Divide

Facebook, the world's most popular social media platform has failed measurably as it is voted as the...

Social Media Titan Facebook can’t have better start of the year than this; leader in social networking has grabbed another round of funding by the Goldman Sachs and a Russian Investor who have invested $500 Million with company valuation of $50 Billion, according to sources. With new valuation figure, Facebook leads than YouTube, eBay and Time Warner.

Facebook is already sitting on the overall investment of $800 million and with this new round of funding it will over exceed 1 Billion investment marks. Interestingly, the new round of funding will not only boost the valuation of company but will also put Mark Zuckerberg, Co-Founder and CEO of Facebook, in a league with Larry Page and Sergey Bin – Founders of Google- which are reportedly worth $15 Billion. Mark Zuckerberg, recently titled as Time Person of the Year 2010, was holding his personal fortune worth $6.9 billion at the timer when Facebook was valued $23 Billion. Doubling the valuation of Facebook, Mark’s personal valuation may also jump to 100%.

As per the NYT, Goldman Sachs, a first time investor in Facebook, has injected $450 Million and rest 50 Million will come from a Russian investment firm Digital Sky Technology. Interestingly Digital Sky Technology has already poured about half a billion dollars in Facebook till date.

Advertisements

The other side of this investment holds regulatory benefit for Facebook. With first ever investment in Facebook, Goldman Sachs will also create a “special purpose vehicle” which will allow Facebook to raise further round of investments without disclosing its financials. As per the S.E.C., any company which has more than 499 investors will have to expose its financial results to public. As Facebook don’t carry any plan to go public before 2012, “special purpose vehicle” will channelize the new investments through Goldman Sachs into Facebook but will be counted as a single investor.

The pressure to go public is already mounting on all social media companies like Facebook, Twitter, Groupon, Zygna and many others who are witnessing enormous growth in last couple of months and have raised sizable investments in multiple rounds. An enquiry has already been triggered by Security Exchange Commission on such companies to avoid any improper use of private investment market to get around public discloser requirements.

The new round of investment will be used to strengthen company’s human resources, steal many more top brains from industry, focus on improvisation of Facebook features & new development and, probably, few new acquisitions.

By all the means, Google will be closely monitoring all the such development related to Facebook as company is facing stiff competition for long time. Recently Google lagged behind to Facebook for second position in search terms in U.S. and lost many top executives only to drive Facebook.

With so much to talk and observe, it will be interesting to monitor any further development and Google’s position in this space.

Advertisements

5 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

The Raining Discounts Are Coming As Flipkart And Amazon Gears Up For Festive Season Sale

The festival season is about to begin and eCommerce majors in India Amazon and Flipkart are aiming...

Amazon, Google And Microsoft Are Extreme Angry With TRAI

The big three of the tech industry - Amazon, Microsoft And Google - seems to be quite annoyed. Cloud...

New Android Malware Steals Your Banking Credentials And Let Hackers Access Your Smartphone

If you are an active user of banking apps on your Android smartphone, you must pay close attention to it.

An IT Service Help Desk Is Essential To Drive Business Growth

There's no debate about the fact that an IT service desk, when properly run, leads to both short-term and long-term business growth....

Chinese Investment In Indian Startups Is Now A Distant Dream

When the Indian Government changed its FDI policy in late April, China got handed the short end of the stick for investing...

Why Is Google Pay In Hot Water in India?

Google Pay has been treading in hot water over a Public Interest Litigation as of late. The company is...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This