Facebook has reportedly raised $500 million from Goldman Sachs -- along with Russia's Digital Sky Technologies -- at a valuation of $50 billion.
"The stake by Goldman Sachs, considered
one of Wall Street's savviest investors, signals the increasing might of Facebook, which has already been bearing down on giants like Google,"
writes The New York Times' Dealbook.
What's more, "The Wall Street
company's involvement will likely increase speculation about whether Facebook might undergo pressure to have an initial public offering sooner than previously planned," notes All Facebook.
While not endorsing a specific valuation, a new forecast from JP
Morgan's Imran Khan clearly illustrates Facebook's multiplying value. Under the headline, "Why is Facebook worth $50 Billion?" MediaMemo cites the fact that Facebook has already surpassed Google and Yahoo in terms of
total time spent on the Web, while its user reach continues to grow exponentially.
Dealbook says the money is earmarked for hiring new talent, building products, and
potential acquisitions.
Adding that Facebook also needs the money to compensate early investors -- along with early employees cashing in their company shares -- Search Engine Land speculates on where the social leader might invest its millions. Mobile,
ecommerce, and local are the obvious answers. Less so it search, but, says SEL, its "gravitational pull" may be too great for Facebook to resist.
Meanwhile, as part of the
reported deal, Goldman Sachs is expected to help Facebook raise an additional $1.5 billion. To do this, the investment bank reportedly plans to create a "special purpose vehicle" that will allow its
investors to invest in Facebook indirectly.
"This would help Facebook bypass a S.E.C. regulation that requires companies with more than 499 investors to disclose their financial
results to the public," notes Mashable.
Or not -- seeing as how the SEC recently launched an inquiry into secondary market trading of
private shares and Fortune, for one, suggests that Goldman's "special vehicle" it too creative for its own good.
Read the whole story at Dealbook et al »