U2 front man Bono has reportedly made over £300 million by investing in Facebook.
The rock star is said to have bought a 1.5 per cent stake in the social networking site for £130 million in 2010 and less than a year later they have been valued at an impressive £485 million.
Facebook is now worth £32 billion after it was given a boost of funding from Goldman Sachs and Digital Sky Technologies at the beginning of January. The internet giant does not yet float on the stock market and this cash may stall the process further.
Nate Elliott is principal analyst for Forrester Research and believes this extra investment was not needed to grow the business which, at £8 billion, already had enough funds to develop successfully and advertising revenues that can cover operational costs outright. Instead, says Elliott, the money was used to re-position Facebook as a super brand and to give early investors the opportunity to cash their shares without floating.
January 2011 keeps getting better for Facebook as MySpace concedes that it can no longer call itself a direct rival to the site. Mike Jones, chief executive of MySpace, is not even calling the group a social network anymore as he sets about rebranding it as a social entertainment destination.
This evolution will change the site to a more content focused format and includes a shortening of the logo to My___. It may not be enough to save the failing business whose user numbers have diminished since Facebook began to dominate the market in 2008.