Feeds

$50bn-valued Facebook goes public about going public

IPO-incoming. Just not yet, OK

Boost IT visibility and business value

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. ®

Build a business case: developing custom apps

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.