Feeds

Facebook sells equity: Reportedly valued same as Tesco

Wealthy insiders get early slice of boydroid pie

Build a business case: developing custom apps

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. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.