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

Must Read

India-China Tussle May Result In Massive Job Losses

The Sino-Indian border dispute has been a hot topic in Indian news and media ever since it...

Upskilling Is Mandatory As 72% Companies Have More Than 25% Roles At Risk!

The COVID-19 pandemic has led to businesses around the world facing unprecedented amounts of disruption and change....

India May Have 2.87 Lakh Coronavirus Cases Every Day By Early Next Year [STUDY]

As the number of coronavirus cases in India is on constant rise, the country might see 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

Google’s New Announcement For India Is Making Heads Turned!

The digital economy of India is all set to receive a massive boost after the head-turning announcement...

Qualcomm Ventures Invests In Jio: A Masterstroke To Dominate 5G Market In India!

If you thought Reliance’s hot streak of selling stakes in Jio Platforms was over after 12 deals with Intel Corporation’s investment arm...

The Success Of TikTok Alternative Apps May Be Short-Lived [STUDY]

After the Indian Government, in a bid to take a stance against China, banned TikTok and 58 other Chinese apps, the popular...

India’s Flourishing Gaming Sector: What’s Driving The Growth!

The Indian gaming market is one of the fastest-growing gaming markets in the world. In 2019, the number of gamers in the...

Employee App: Companies Must Have To Thrive In The New Normal

With all the advancements in technology, managers and business owners seem to be taking note. Far too many believe that traditional methods...

India-China Tussle May Result In Massive Job Losses

The Sino-Indian border dispute has been a hot topic in Indian news and media ever since it escalated to unprecedented levels back...

In-Depth: Dprime

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...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

TikTok Is Facing The Wrath Of People Who Love It The Most

Ever since the popular social media app TikTok entered India, it has been growing very aggressively in terms of users. Within a...

More Articles Like This