Feeds

Facebook sells equity: Reportedly valued same as Tesco

Wealthy insiders get early slice of boydroid pie

Top 5 reasons to deploy VMware with Tegile

Cash-loaded Goldman Sachs clients with more than $2m to wave around were told over the weekend that they would soon have the opportunity to invest in Facebook.

According to a report in the New York Times, the brokerage plans to offer its clients up to $1.5bn in Facebook Inc equity.

Goldman Sachs said in an email to would-be investors on Sunday that they could splurge cash on a “private company that is considering a transaction to raise additional capital”.

But the unnamed firm was quickly identified as Facebook which – according to sources cited by the NYT – got tagged with a valuation of $50bn, after raising $450m from Goldman Sachs and $50m from a Russian investor.

Clients of the brokerage who do plan to invest in Mark Zuckerberg’s company have to cough up at least $2m, not sell their shares in Facebook until 2013, and steer clear of trading in secondary markets where the firm trades. That’s because they will be given juicy non-public information about the social network.

Investors interested in the opportunity will receive an email shortly with a “private placement memorandum”.

But such an investment doesn’t come without a certain amount of heat, given that Facebook is reportedly under scrutiny from US securities watchdog, the US Securities and Exchange Commission (SEC).

As noted by the Wall Street Journal last week, a series of letters have been sent to an unknown number of people trading in the stock of Facebook and Twitter. It's understood that the SEC, whose investigation is at a preliminary stage, wants to know how such funds in what is a growing secondary marketplace are valuing shares of those privately-held internet companies.

If the reported valuation of Facebook at $50bn based on the new equity offerings is correct, it's worth noting that the cloudy Web-2.0 firm thus considers itself to be worth almost as much as dominant UK retail monster Tesco ($54bn), laden with real-world assets such as shops, trucks and stock. ®

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.