Feeds

$50bn-valued Facebook goes public about going public

IPO-incoming. Just not yet, OK

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
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 cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.