This morning we woke to news that Facebook had received yet another financial investment. After recently receiving a $500 Million direct investment from Goldman Sachs, today’s announcement includes investment again from Goldman Sachs Overseas Offering as well as Digital Sky Technologies.
The US$1 Billion investment now puts Facebook’s value at $50 Billion. Interestingly Facebook had the choice of accepting an investment between $375 Million and $1.5 Billion, so why not take all they could ? The investment equates to a share of the company, by not taking the maximum possible investment, Facebook could potentially sell remaining shares (still not public) in the future for a higher cost as value continues to sky rocket.
Facebook is almost drowning in funding right now, confirmed by the statement ‘There are no immediate plans for these funds.’ There was mention of further investment into expanding operations, but current investment would more than cover the cost of that.
There’s been a lot of discussion around Facebook going public (allowing you to get in on the share action). Included in the statement details that Facebook expects to start filing public financial reports no later than April 30, 2012. The US has a requirement for companies with more than 500 shareholders to report finances publically. While its possible to do this and not go public, its the main reason for not, so if Facebook begin reporting finances, they may as well go public and truly become a grown up company. Hopefully this doesn’t effect their ability to be nimble and respond (or lead) consumer needs.
Read the official press release at PRNewsWire