Got an Extra $2 Million? Invest in Facebook

By Cindy Waxer January 03, 2011

Goldman Sachs has given new meaning to the term “Facebook friend.” The global investment banking and securities firm has invested $450 million in the hot social networking firm, as first reported by DealBook. DealBook reveals that the deal values Facebook at $50 billion and that Goldman is also aiming to raise as much as $1.5 billion from its wealthy clients to invest in Facebook.

DealBook reports that over the weekend, Goldman clients received an unusual request in their inbox – an invitation to invest in Facebook, which industry observers say is likely to stage an initial public offering in 2012. According to DealBook, clients would have to invest a minimum of $2 million and would be prohibited from selling their shares until 2013.

Goldman Sachs ranked as the top global mergers and acquisitions advisor last year, ousting competitor Morgan Stanley from its stronghold, according to Thomson Reuters data released this week. Goldman advised on 370 deals worth $554.5 billion in 2010, compared with Morgan Stanley's 394 deals worth $538.1 billion.

As for Facebook, the social networking site eclipsed Google as the most-visited website in the U.S. in 2010, according to a recent report from research firm Experian Hitwise.

In October, Facebook unveiled a handful of new features including “Groups,” which lets Facebook members target their updates and swap information with cabals of their choosing. Facebook’s blog explained how the new feature works:

“With new Groups, we made it easy for you to build a space for important groups of people in your life -- your family, your soccer team, your book club. All you have to do to get started is to create a group, add friends and start sharing. When a group member posts to the group, everyone in the group will receive a notification about that post. Now I won't have to guess anymore about whether my parents saw the pictures I posted of their grandkids; when I post in my family group, I'll know that they've been notified about it and that only they will see it. Since information posted in my new groups is only visible to group members by default, I can feel confident about who sees what I post.”




Edited by Tammy Wolf

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Amid Cryptocurrency Mania, Coinsquare's goNumerical Raises CAD $10.5M

By: Paula Bernier    12/5/2017

The company that operates the Canadian digital currency exchange known as Coinsquare says it has raised CAD $10.5 million in new funding.

Read More

Your New Heart Monitor is an Apple Watch. Really.

By: Doug Mohney    12/4/2017

Looking at a new smartwatch or fitness wearable for the holidays? If you are concerned about your heart health due to family history or reason, Apple …

Read More

Amazon Unleashes Alexa for Business - Consequences Abound

By: Doug Mohney    11/30/2017

Today, Amazon Web Services (AWS) announced Alexa for Business, bringing Amazon's intelligent assist into the office. This shouldn't be a surprise to T…

Read More

Pai Makes His Case for Title II Repeal

By: Paula Bernier    11/21/2017

FCC Chairman Ajit Pai today made clear his plans to repeal Title II net neutrality rules. The commission is expected to pass his proposal at its Dec. …

Read More

Winners of the 2017 Tech Diversity Award Announced

By: TMCnet News    11/20/2017

TMC, a global, integrated media company helping clients build communities in print, in person and online, today announced the recipients of the 2017 T…

Read More