Home > education, entertainment, facts, tech, technology > Facebook Raises $1.5 Billion, Now Worth $50 Billion

Facebook Raises $1.5 Billion, Now Worth $50 Billion

Facebook has just announced that it has raised $1.5 billion in venture funding from Digital Sky Technologies, Goldman Sachs and clients of the investment bank. With this round, Facebook is officially worth $50 billion.

“Our business continues to perform well, and we are pleased to be able to bolster our cash position with this new financing,” Facebook CFO David Ebersman said in its announcement. “With this investment completed, we now have greater financial flexibility to explore whatever opportunities lie ahead.”

DST invested $50 million while Goldman Sachs invested $450 million. The remaining investment came from overseas shareholders participating in Goldman Sach’s Facebook investment vehicle. The social network says that it could have raised anywhere between $375 million and $1.5 billion from the investment vehicle, but decided in the end to limit the additional funding to $1 billion.

Facebook says that it was approached by DST and Goldman Sachs about the potential investment, and “Facebook decided it was an attractive opportunity to bolster its cash reserves and increase its financial flexibility.” The social network also confirmed in its announcement that this transaction will give it over 500 shareholders, which will require Facebook to publicly disclose its financial results no later than April 30, 2012.

Facebook says that it has no immediate plans for the $1.5 billion it has in its bank, though we believe it will use that money to buy the old Sun Microsystems camous in Menlo Park, expand its staff and accelerate its acquisition strategy.

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  1. January 22, 2011 at 11:52 am

    With all that money there making why don’t they create a video respond box so instead of typing a response you can send a video response.

    • chris
      January 23, 2011 at 12:02 am

      True…. well acctually there are so many features that Facebook can add and will add… but they wouldn’t do it all in one go…. 😛

      that effects the business as after a while we may find it boring and the traffic may slow… i think they will slowly and steadily introduce everything… also they have to look out for their biggest RIVAL.. GOOGLE now that larry page is back 🙂

  2. phillip
    January 27, 2011 at 8:13 pm

    i added your blog to my stumbleupon account.also i emailed this post of yours to a couple of friends of mine.

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