Facebook could be worth as much as $50bn



According to the New York Times Facebook has reportedly raised funds from Goldman Sachs and a mystery Russian investor in a deal that would value the site at $50bn (£32.3bn). It has been suggested that Goldman was investing as much as $450m with Digital Sky Technologies putting another $50m in to the pot.

Goldman’s involvement in the deal has brought speculation that Facebook may float on the stock market.

The Financial Times has also reported similar figures.

A spokeswoman from Facebook has refused to comment on the story published in the Times. Goldman has also followed suit and has not commented.

If the value of Facebook is set at $50bn, this would make the company more valuable than other internet giants such as: eBay and Time Warner.

New speculation has been brought about on what the use of this fund will be, with the New York Times suggesting that new products and new acquisitions will be explored in the coming months.

This fund may also enable current shareholders to cash in some of their stakes in the company which would open up some competition for some who may like to place a stake in the company.

The paper said the Securities and Exchange Commission (SEC) was looking at the growth in the private market for trading in companies like Facebook, Twitter, and LinkedIn.

Regulators are concerned that, with this private market booming, companies are able to circumvent public disclosure requirements.

Further scrutiny by the SEC could help push Facebook towards a public listing, although the company’s founder, Mark Zuckerberg, has denied there are plans for a flotation.

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