Facebook strikes Gold with new investors



Facebook value increases

Facebook value increases

The value of popular social networking site Facebook has soared as American bankers Goldman Sachs have pledged an investment in the company.

Following Goldman Sach’s investment of $450m in Facbook, the value has reached an astounding $50bn (£32.3bn).

It is expected that Goldman’s involvement could cause Facebook to float on the stock market, with figures expecting to rise during the year.

Digital Sky Technologies have also invested in the company, with the amount of around $75m (£48.75m). The company previously invested £192m in Facebook, at a time when the company was worth one fifth its current value in 2009.

A Reuters source revealed that Goldman Sachs combined with DST plan to raise an additional $1bn (£646m) for the technology company.

The astonishing value is higher even than popular websites eBay and Yahoo combined.

David Smith from the Interactive Media in Retail Group said “Facebook in itself becomes almost like a walled garden.

“Particularly in our industry, in retail, you’ve got lots and lots of retailers using Facebook to communicate with their consumers.”

In 2010, Facebook overtook search engine Google and became the most visited website in the US during 2010, it was also deemed the most searched term.

A spokeswoman for Facebook told the BBC that the company was not commenting on the story. Goldman also declined to comment.

Securities and Exchange Commission (SEC) are thought to be looking at the growth in the private market for trading in social networking websites such as Facebook and Twitter.

Concerned regulators say that companies are able to circumvent public disclosure requirements as a result of the booming private market.

Facebook could be pushed towards a public listing as a result of further scrutiny by the SEC, though the company’s foudner, Mark Zuckerberg, has denied that there are any plans for a flotation.

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