Feeds

Investors fight to buy secret special-offer Facebook equity

Zuckerberg cloudwad, the hottest paper on Wall Street

Security for virtualized datacentres

Goldman Sachs is to reportedly end soliciting interest in Facebook shares from wealthy investors later today.

According to the Wall Street Journal, which cited people familiar with the situation, the brokerage has been inundated with orders of "several billion dollars" after the deal emerged over the weekend.

Goldman Sachs offered some of its clients up to $1.5bn in Facebook Inc equity.

At the same time, it was revealed that Facebook got tagged with a valuation of $50bn, after raising $450m from the brokerage and $50m from Russian investor, Digital Sky Technologies, which splurged $200m on Facebook just last year.

The newspaper said that Goldman had merely provided would-be investors with a "snapshot" of Facebook's potential value. Details include online traffic, adverts and other vanilla information, but without any mention of the social networking site's bottom line.

Separately, the WSJ cited people who had viewed an offering document that said Facebook had net income of $200m in 2009 on sales of $777m. However, 2010 figures were kept secret.

While some Goldman Sachs clients have been dribbling at the prospect of investing in Facebook, others have resisted.

One Goldman Sachs partner declined to buy shares in Facebook, according to the paper, by saying that the $50bn valuation was too generous a figure for Mark Zuckerberg's online estate.

"Google's trading at seven times sales. I'm not going to buy Facebook at 25 or 50 times sales," said the ex-Goldman partner. However, he may invest in a Goldman-backed fund that could yet throw cash at Facebook. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
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
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.