GSV Takes Stake In Facebook

Investment fund GSV Capital Corp has reportedly taken a small stake in Facebook at a valuation of about $70 billion. "The investment fund said on Monday that it had bought 225,000 shares in Facebook at an average price of $29.28 each," Reuters reports. Perhaps more notable, however, are the circumstances under which the investment was made.

Ahead of what executives are calling an inevitable IPO, "Concerns about Facebook's white-hot growth have surfaced in recent months," writes Reuters. For one, a group of Facebook shareholders is trying to sell $1 billion of stock on the secondary market in a transaction that also would give the company a value of about $70 billion, Reuters reported in April.

Stull, "Everyone wants to get a piece of Facebook," writes 24/7 Wall St. "Shares have been sold by the company and shares have been sold by employees and insiders on private market exchanges." "At $70 billion, Facebook would be valued slightly below Amazon.com Inc, Cisco Systems Inc or Hewlett-Packard Co.," according to Reuters.

Facebook currently has about 2.4 billion outstanding shares, according to the latest data from secondary market company Sharepost. "Facebook is a one-of-a-kind business which has created enormous network effects," Michael Moe, GSV Capital's founder and CEO said in a statement. "With over 650 million people on its platform, or approximately 1/10 of the world's population, Facebook has established itself as a next generation social communications platform."

Tags: facebook, ipo
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1 comment about "GSV Takes Stake In Facebook".
  1. Howie Goldfarb from Blue Star Strategic Marketing , June 27, 2011 at 3:38 p.m.

    This stuff drives me crazy. Short the stock. Obviously GSV is looking to pump and dump. And the trade pubs aren't helping. When you break the facebook stats down it is a dying network. You can't market to people on facebook. I could go blue rattling off everything. But let the suckers lose their money. What I hate is Zuckerberg and Sandberg making off with the suckers money. They are slime weasels who don't deserve a dime.