Friday, January 21, 2011

Facebook Raises Another $1 Billion From Outside US

Facebook adding another $1 billion to its latest round of funding, to bring the total to $1.5 billion, and valuing the company at $50 billion.

That includes the approximate $500 million Goldman Sachs (NYSE:GS) and Digital Sky Technologies invested in Facebook in December.

While some like to make a big deal about Facebook having a market value higher than eBay (NASDAQ:EBAY) and Yahoo (NASDAQ:YHOO), the reality is until everyone gets a look under their financial hood, those numbers are really meaningless. That will happen in 2012.

Facebook confirmed they'll start filing public financial reports by April 30, 2012. Assumptions are it won't be long after they'll go public, as all the reasons for remaining private will now be gone since they've surpassed the 500-investor mark.

Investments in Facebook are in the Class A shares of the company, which don't offer as much voting power as the Class B shares, which are held by executives and early employees at the company. That gives those in charge continual control of the company. Companies like Warren Buffett's Berkshire Hathaway (NYSE:BRK-a) and Google (NASDAQ:GOOG) have similar corporate structures.

1 comment:

Anonymous said...

Facebook should be worth more than USD 50 billion? Wedbush analyst Lou Kerner expected in the case of an IPO a valuation of about USD 100 billion and Facebook CEO Mark Zuckerberg should have announced a goal valuation to his employees of USD 1,000 billion.

Nobody knows but true is that Facebook is only the number two in social networking. The most successful social media network by financials and users comes from China. While almost none of the 1.3 billion populations have ever heard of sugar's platform, nearly 636 million people use the Chinese internet platform to communicate and share private stuff.

Here is a company that is listed on the Hong-Kong Stock Exchange and leads the Chinese market for social networking. The company has a market capitalization of USD 44.2 billion and 636 million users. It serves USD 1.3 billion cash and generated sales in an amount of USD 1.8 billion; Net income was USD 0.7 billion.

+++ http://t.co/9CHx7Ja +++