Feeds

$50bn-valued Facebook goes public about going public

IPO-incoming. Just not yet, OK

Beginner's guide to SSL certificates

Facebook finally confirmed on Friday that it had indeed raised $1.5bn courtesy of brokerage Goldman Sachs and Russian investor Digital Sky Technologies.

Reports that the Mark Zuckerberg-run social networking website had been valued at $50bn – that’s almost as much as dominant UK retail monster Tesco ($54bn) – surfaced earlier this month.

But Facebook has only just decided to officially acknowledge what world+dog has known for the past few weeks.

It said that it raised $1bn from wealthy overseas Goldman Sachs’ clients. Additionally, the firm confirmed that Goldman and DST had pumped $500m into the $50bn valued site in December.

“Our business continues to perform well, and we are pleased to be able to bolster our cash position with this new financing,” said Facebook chief financial officer David Ebersman.

“With this investment completed, we now have greater financial flexibility to explore whatever opportunities lie ahead.”

The company said that under the terms of the deal with Goldman, aka the Vampire Squid, it had the option to accept between $375m and $1.5bn from the brokerage’s non-US offering.

“While the offering was oversubscribed, Facebook made a business decision to limit the offering to $1bn,” it said.

The website added that it had no immediate plans to use the funds, instead it will sit on them and continue investing to build and expand its operations.

Here’s perhaps the most important bit of the announcement, that’s seemingly circled with a big fat IPO:

“Even before the investment from Goldman Sachs, Facebook had expected to pass 500 shareholders at some point in 2011, and therefore expects to start filing public financial reports no later than April 30, 2012.”

It's been reported that Facebook pulled in $1.2bn in revenue over the first nine months of 2010, and net income reached $355m. ®

Choosing a cloud hosting partner with confidence

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
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

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.
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?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.